Within the metropolitan area, apartment prices are showing an upward trend in some areas like Songdo International City and Dongtan City, which are considered to be high-grade locations. As the mortgage loan amount is limited to 600 million won due to the 6.27 measures, transactions are increasing, focusing on mid-to-low priced apartments in newly developed towns with good infrastructure rather than high-priced apartments.
According to the 23rd real estate big data platform A-sil, an 84㎡ unit of 'Songdo American Town The Sharp' in Incheon's Yeonsu District was transacted for 815 million won on the 2nd of this month (61st floor). This unit type had previously reached a peak price of 833 million won on April 23rd (66th floor) and had been traded around the 700 million won mark before surpassing 800 million won again this month.
In the case of 'Hillstate Lake Songdo 4th', which is currently seeing occupancy progress this month, a total of five transactions have occurred since the implementation of the 6.27 measures. For an 84㎡ unit, a contract was concluded for 926.39 million won (8th floor) on the 2nd of this month. This is near the peak price of 951.99 million won last February.
These apartments are located within the 6th, 7th, and 8th construction sections, where new residential areas are being developed in Songdo International City. Existing apartments in the town center have surpassed 1 billion won, creating a loan burden; thus, apartment prices are rising in areas with potential future prospects.
Incheon has emerged as the only area in the metropolitan area where first-time home buyers have increased since the 6.27 measures. According to the Court Registration Information Plaza, from the implementation of the 6.27 measures on the 28th of last month to the 20th of this month, 3,934 first-time home buyers in Incheon purchased collective dwellings (apartments, officetels, multi-family homes, townhouses, etc.), which is a 13.2% increase compared to the same period before the measures, which recorded 3,474 buyers from May 5 to 27. In the same period, the entire metropolitan area saw a decrease from 17,418 first-time home buyers to 13,953, a drop of 19.9%. Particularly in Gangnam District, Seoul, the number fell from 345 to 103, a decrease of 70.1%.
Jo Young-gwang, a researcher at Daewoo E&C, said, "Areas like Gangnam in Seoul have already built insurmountable barriers, but the market is solidifying around the metropolitan area." He added, "It seems that the buying trend is shifting towards livable new town apartments that can be purchased with small mortgage loans."
A similar atmosphere is forming in Dongtan City, Gyeonggi Province. For 'Dongtan Station Demonstration Woonam First Ville', which is regarded as having the best location within Dongtan City, the prices of most unit types are rising in line with the 6.27 measures. An 84㎡ unit was traded for 1.206 billion won (14th floor) on the 27th of last month, the same day as the measures, and 1.2 billion won (6th floor) on the 4th of this month. This unit type reached a peak price of 1.44 billion won in July 2021 but fell to 880 million won by the end of 2022.
Other apartments in the demonstration complex are also showing an upward trend. A 97㎡ unit at Dongtan Station Demonstration The Sharp Central City was completed for 1.577 billion won on the 3rd of this month. This is an increase of 82 million won compared to the previous transaction of 1.495 billion won in June. A 113㎡ unit of Dongtan Station Demonstration Hanwha Dream Green Prestige was transacted for 1.54 billion won (12th floor) on the 28th of last month and 1.545 billion won (9th floor) on the 1st of this month. This unit type had been trading at around 1.5 billion won for some time this year before suddenly soaring in price. According to the Korea Real Estate Board (REB), the weekly apartment prices in Hwaseong City have recorded an upward trend for five consecutive weeks.
Ham Young-jin, head of the real estate research lab at Woori Bank, noted, "Songdo International City has had abundant supply for a while, causing price adjustments, but it seems that real demand is being drawn in, focusing on new constructions." He added, "Dongtan seems to be receiving demand due to its status as a beneficiary of the GTX, resulting in a lower loan burden."