Once, there was great anticipation in the Pyeongtaek and Icheon economies due to the semiconductor industry, but as the semiconductor industry shows signs of weakness, apartment sales prices are declining, and unsold units are surfacing. There are also concerns that excess supply may lead to an increase in problematic unsold units in the future.
According to the Korea Real Estate Board on the 21st, the apartment sales price index for Pyeongtaek and Icheon during the third week of February fell by 0.23% and 0.09%, respectively, compared to the previous week. According to the Ministry of Land, Infrastructure and Transport statistics on unsold dwellings, as of December last year, the number of unsold dwellings was recorded at 4,071 in Pyeongtaek and 1,911 in Icheon, ranking first and second in Gyeonggi Province.
According to the Ministry of Land, Infrastructure and Transport's real transaction disclosure system, a dedicated area of 84㎡ at 'Godeok International New Town Paragon Edufore' in Godeok-dong, Pyeongtaek, was traded for 580 million won last month. This is a 12.1% (80 million won) decrease compared to the previous transaction of 660 million won in October last year. The 84㎡ at 'Hoban Summit Godeok New Town' in Godeok-dong was traded for 630 million won last month, which is over 100 million won lower than the price of 740 million won traded in April last year.
The 84㎡ at Icheon Central Prugio was traded for 510 million won this month, down 40 million won from the 550 million won transaction made last May.
Pyeongtaek was anticipated to be a location where real demand would gather since the Samsung Electronics Pyeongtaek Campus semiconductor factory is located there. It is also an area expected to benefit from the GTX. Icheon is home to the SK hynix headquarters and semiconductor factory, and it once recorded high housing price increases due to transportation developments such as the double-track electrification of Gyeonggang Line and the opening of the Central Inland Line. However, due to lackluster performance in the semiconductor sector of Samsung Electronics last year, part of the Pyeongtaek semiconductor factory suspended operations, and the real estate market contraction has led to declining prices and accumulating unsold inventory since last year.
SK hynix recorded its best performance ever, but as President Trump announced plans to impose semiconductor tariffs, a sense of crisis has emerged throughout the semiconductor industry.
A representative from an A realtor in Hapjeong-dong, Pyeongtaek said, 'The Pyeongtaek real estate market is greatly influenced by Samsung Electronics. As the semiconductor sector's performance at Samsung Electronics has declined, direct impacts are seen such as reduced transactions and fewer rental inquiries in places like Godeok New Town.'
Experts pointed out that oversupply is also a factor. Currently, the Pyeongtaek and Icheon areas are in a state where unsold units after completion have not emerged, and they forecast that a large number of problematic unsold apartments classified as post-completion unsold units may flood the market within 1 or 2 years.
According to Real Estate R114, over the past three years, more than 10,000 units have been supplied annually in Pyeongtaek. In 2022, 12,130 units were supplied, 13,026 units in 2023, and 14,275 units were supplied last year. In Icheon, while the supply volume was moderate with 2,056 units in 2022 and 2,598 units in 2023, last year saw 5,417 units being supplied, nearly doubling the amount from the previous year.
Kim Hyo-sun, the chief real estate officer at NH Nonghyup Bank, said, 'While the semiconductor industry itself has weakened, areas like Pyeongtaek and Icheon have seen oversupply as a judgment that demand would exist with the semiconductor cluster being established.' She noted that 'despite high supply, there has been a rapid price increase compared to other regions in Gyeonggi Province, leading to recent transactions not taking place smoothly, and the outer regions of the economy being neglected, causing prices to contract.'
She added, 'It has been judged that prices have risen significantly compared to value, making price adjustments unavoidable for the time being.' She also projected that 'the large supply volume from last year could potentially be converted into unsold units after completion in the future.'