About a month has passed since the government announced the reconstruction of the first phase new towns (Bundang, Ilsan, Pyeongchon, Jungdong, and Sanbon), and Pyeongchon, Jungdong, and Sanbon are also showing an upward trend in both actual transaction prices and asking prices. Contrary to initial predictions that there would be little impact on housing prices in areas other than Bundang due to low investment demand and limited burden capacity for contributions, a rising trend is seen in Pyeongchon and Jungdong complexes, where prices had formed low despite good locations.
According to the Ministry of Land, Infrastructure and Transport’s actual transaction disclosure system on the 2nd, the Daewoo Dongbu apartment in the Eunha Village of the Jungdong New Town leading district, with a dedicated area of 134㎡, was sold for 1.048 billion won on October last year, reflecting an increase of 198 million won compared to 850 million won in January last year. The Ssangyong Hyosung apartment with a dedicated area of 134㎡ was sold for 910 million won in September, up 110 million won from 809 million won in February. Though the transaction occurred before the announcement of the leading district, it is interpreted that the positive factors were already factored in as it was identified as a likely candidate for selection before the announcement.
Pyeongchon also saw increases in both actual transaction prices and asking prices. The Saem Village Ubang apartment in the Pyeongchon leading district was sold for 1.113 billion won in November last year, which is an increase of 203 million won compared to the 910 million won it was sold for in January last year.
In the case of the Kkum Village Kumho Apartment, the current listing price for a dedicated 101㎡ unit is set in the range of 1.4 billion won. An official from an A real estate agency in Pyeongchon-dong, Anyang-si, Gyeonggi Province noted, "The price of Kkum Village Kumho has risen this year, and the designation of the leading district has further increased the asking prices," adding, "There were also homeowners who withdrew their listings in anticipation of selection just before the announcement of the leading district." The official explained that a dedicated 101㎡ unit of the Kumho Apartment was transacted for 1.29 billion won last July, and currently, listings under 1.4 billion won are rare.
Although there were concerns that the impeachment political situation would hinder project progress, the desire for reconstruction among residents of the first phase new towns has increased, maintaining the momentum for progress, resulting in price increases primarily in well-located complexes. Seo Jin-hyung, a professor at Kwangwoon University’s real estate law department, remarked, "As reconstruction projects become visible and the occupancy date approaches, buying forces influx, and price increase effects are inevitable. This applies to the lead district project of the first phase new towns as well."
Yoon Soo-min, a specialist at NH Real Estate, commented, "Places like Pyeongchon Saem Village have complexes that served as leaders in the surrounding areas, so the designation of the leading district has indeed heightened local interest and improved the atmosphere."
However, it is also pointed out that currently, only asking prices have risen, so it should be observed whether this will lead to actual transactions in the future. Specialist Yoon noted, "It cannot be viewed positively in the market based solely on asking price increases. Right now, homeowners are increasing their asking prices in expectation of heightened demand as interest in the region grows," adding, "Especially in Bundang, even with the burden capacity for contributions, concerns about contribution burdens are arising, and the overall real estate market is becoming more cautious, so whether the elevated asking prices will translate into actual transaction prices remains to be seen."