In Gyeonggi Province, the apartment prices in areas benefiting from the metropolitan express railway (GTX) have recently shown an upward trend, yet transactions are not being made, leading to a backlog of unsold properties. Analysts suggest that due to the real estate market slump and lending regulations, buyers are trying to purchase at the lowest possible prices, resulting in an inability to find a price point.
According to the apartment transaction price data from real estate information provider Asil on the 5th, the number of apartment listings for sale in Gyeonggi Province reached 155,810, marking a 4.3% increase compared to Sept. 1 of last year when housing prices were rising. This was the fifth-largest increase among the 17 cities and provinces nationwide during the same period.
In particular, areas like Goyang, Paju, Gimpo, Hanam, Seongnam, and Hwaseong in Gyeonggi Province, which have received attention due to infrastructure improvements related to GTX, are experiencing a backlog of listings. The number of apartment listings in Hanam increased by 14.3% (from 3,216 to 3,677) compared to Sept. 1 of last year. Seongnam's Sujeong District saw an increase of 14.1% (from 1,172 to 1,338), Seongnam's Jungwon District by 11.3% (from 1,288 to 1,434), Goyang's Deogyang District by 11% (from 4,446 to 4,936), Hwaseong by 8.3% (from 10,661 to 11,551), Paju by 7.4% (from 4,854 to 5,217), and Gimpo by 3.2% (from 8,711 to 8,996).
These areas have seen many buyers purchase at high prices due to developments coinciding with the housing price surge. According to the Korea Real Estate Board's weekly apartment price trends, the cumulative increase in apartment sales prices last year was 3.40% in Seongnam, 3.01% in Hanam, 2.65% in Hwaseong, 2.56% in Goyang Deogyang District, and 0.73% in Gimpo, all indicating an upward trend. Paju recorded a decrease of -1.02%.
However, currently, the transaction volume is declining, worsening the backlog of listings. An official from a Goyang Deogyang District real estate agency noted, "There was a time when interest in the GTX development led to some transactions, but those who purchased then are unable to accept the lower current prices.
An official from a Hwaseong Shin-dong real estate agency also stated, "In the Dongtan area, the GTX line was determined early, leading to reduced unsold units and high interest from buyers, but after its opening, user numbers did not meet expectations, causing interest to wane again. There are still inquiries from buyers, but listings at the prices they want are rarely available."
Predictions suggest that the backlog of properties will continue into the second half of the year, as the effects of the GTX opening cannot overcome the economic downturn. Kim Hyo-seon, senior real estate committee member at NH Bank, stated, "In Gyeonggi Province, a recent oversupply has led to an imbalance between supply and demand, resulting in a backlog of listings. Especially toward the end of the COVID-19 pandemic, investment demand emerged based on development expectations, causing housing prices in the Gyeonggi area to surge in a short period. However, recent real estate market stagnation has led to price declines, resulting in those who invested at that time maintaining high selling prices for their properties, and thus transactions are not occurring.
He added, "In the second half of this year, unless there are significant developments in the Gyeonggi area apart from the redevelopment of the first new towns or the construction of the third new towns, it is highly likely that the situation of unsold properties will continue."