During the period of the lifting of the land transaction permit zone (land transaction system), the positive atmosphere that swept the Seoul real estate market has spread to Gyeonggi Province. The real estate transaction volume in February surged by more than 5,400 transactions in one month. As the transaction volume increased, prices are also on the rise. In particular, the house prices in Gwangmyeong, which had been burdened with a 'minus premium (P),' have increased significantly.
According to the Gyeonggi Real Estate Portal on the 28th, the real estate transaction volume in Gyeonggi Province for February was recorded at 20,596 transactions as of that day. This is an increase of 5,460 transactions compared to 15,126 transactions in January. Most of this surge is due to the increase in apartment transactions. Looking at apartment transactions alone, the numbers increased from 6,271 to 9,728 during the same period. Additionally, multi-family and townhouse transactions rose from 1,216 to 1,891, while single-family and multi-family transactions increased from 270 to 508.
When looking at the increase in apartment transaction volumes in Gyeonggi Province by major city, ▲Suwon 569→871 transactions ▲Yongin 600→979 transactions ▲Anyang 325→505 transactions ▲Hwaseong 462→721 transactions ▲Goyang 435→659 transactions.
This is interpreted as the revived buying sentiment in Seoul influencing the nearby Gyeonggi real estate market. The Seoul city government lifted the land transaction permit zone designated in Jamsil-dong, Songpa District, and Samseong, Daechi, and Cheongdam-dong in Gangnam District on February 12, resulting in a surge in apartment transaction volumes. According to the Seoul Real Estate Information Plaza, the transaction volume for apartment sales in Seoul remained at 3,389 transactions in January but surged to 6,103 transactions in February. About a month after lifting the land transactions system, on the 19th, the Seoul city government reassigned the land transaction permit system for the three districts in Gangnam and Yongsan.
Apartment prices in Gyeonggi Province are also showing a recovery trend. According to the Korea Real Estate Board's weekly national apartment price trend, as of the 24th, prices in Gwacheon (0.55%) increased mainly in Byeolyang and Jungang-dong, while prices in Seongnam Bundang (0.16%) rose in relatively undervalued complexes in Yatap and Jeongja-dong. Suwon (0.07%) and Hwaseong (0.05%) are also showing upward trends.
Housing prices in Gwangmyeong, which once had a 'minus premium (P),' are also showing signs of recovery. Gwangmyeong has nearly 10,000 apartment units slated for occupancy this year, alongside ongoing controversies over high selling prices, which led to a temporary 'minus premium (P),' but buying sentiment is now recovering.
'Tridus Gwangmyeong,' which redeveloped Area 2 in Gwangmyeong, recorded a transaction of 1.1629 billion won (29th floor) for an 84㎡ apartment on the 10th of this month, marking a new peak. This apartment complex, consisting of a total of 3,344 units, has been in the process of occupancy since December of last year. The 84㎡ units at 'Gwangmyeong Central I-Park (Area 4 in Gwangmyeong)' are also set to be occupied in November of this year and were sold for 1.26735 billion won (3rd floor) on the 15th of last month, achieving the highest sale price.
In Gwacheon, which is considered the most expensive housing market in Gyeonggi Province, new peak prices are being recorded in major complex areas. The 84㎡ apartments at 'Gwacheon Prugio Summit,' completed in March 2020, recorded a peak price of 2.38 billion won (10th floor) on the 28th of last month. The 84㎡ units at 'Gwacheon Weverpils' also recorded a peak price of 2.285 billion won on the 22nd of last month. Gwacheon Weverpils is an apartment complex of 2,128 units completed in January 2021.
The market anticipates that there will be a 'balloon effect' from the reassignment of the land transaction permit system in Seoul to areas like Gwacheon and Seongnam. This is because investment demand seeking profit through 'gap investment' has no choice but to look for alternative locations, as gap investment in lucrative areas like the three districts of Gangnam and Yongsan has been blocked.
Ham Yeong-jin, head of the real estate research lab at Woori Bank, noted, 'Looking at the transaction volume in Gyeonggi Province for February, it shows a similar trend to Seoul.' He added, 'With the spring season's increase in jeonse (long-term rental) prices coinciding with moving season, there appears to be some balloon effect related to the land transaction permit system in areas like Gwacheon and Bundang.'