Warmth is returning to the apartment sales market in Gwangmyeong, Gyeonggi Province, where as many as 10,000 households moved in this year, leading to unsold units and minus premiums. Recently, for a flagship complex in Gwangmyeong, the standard 84-square-meter unit traded for more than 1.8 billion won even though the right-to-move-in listing came with a no-loan condition.
Gwangmyeong was designated as an area subject to adjustment, a speculative overheating district, and a land transaction permit zone under the government's high-intensity real estate measures released on Oct. 15. Gap investing, which involves transactions with a jeonse tenant in place, has been blocked, and the maximum loan limits were reduced to 200 million won for apartments over 2.5 billion won, 400 million won for over 1.5 billion won up to 2.5 billion won, and 600 million won for 1.5 billion won or less.
However, for Cheolsan Jugong 8 and 9 reconstruction complexes (Cheolsan Xi The Heritage), considered flagship apartments in Gwangmyeong, sale prices have risen by more than 100 million won in recent months. Because resales are restricted in this complex, only listings held by union members can be sold. Among those, a union member can sell an apartment only if the 10-year holding and 5-year residency requirements are met.
On the afternoon of the 30th of last month in Cheolsan-dong, Gwangmyeong, a representative at a real estate agency said, "For Cheolsan Xi The Heritage, the 84-square-meter unit changed hands at 1.7 billion won in September this year, followed by a transaction at 1.82 billion won in late November," adding, "Because this complex has not yet issued registrations and is an unregistered complex, loans are completely unavailable, so transactions must be made entirely in cash, yet a new record-high price was set."
Another real estate agency representative in Cheolsan-dong also said, "Of the 3,800 households in the entire complex, 1,375 are 84-square-meter units, but there is only one listing currently on the market," adding, "This is because it is rare for owners who meet the 10-year holding and 5-year residency conditions to want to sell." The person said, "Asking prices for 84-square-meter units are around 1.85 billion won, which is 30 million won higher than the previous record-high price of 1.82 billion won."
The atmosphere in the real estate market in Gwangmyeong-dong near Cheolsan-dong was similar. It is difficult to find listings in newly built complexes. Even Gwangmyeong District 2 redevelopment (Trius Gwangmyeong), where in March to April this year a flood of listings came with minus premiums on some larger units, has seen those premium-attached listings disappear.
A real estate agency representative in Gwangmyeong-dong said, "Trius Gwangmyeong had a large volume of general sale units, and there were unsold units due to perceptions of high prices at the time of post-sale in 2023," adding, "As recently as March this year, several sale listings were offered at prices 30 million to 50 million won cheaper than the sales price plus option costs, but now it has become difficult to find even listings posted with a premium."
The person added, "Because listings are scarce, whatever the homeowner asks becomes the price," noting, "asking prices are in the 1.2 billion won range for 59 square meters and in the 1.5 billion won range for 84 square meters, and the total number of sale listings among the 3,344 households is fewer than 10."
Older complexes near Cheolsan Station that are slated for reconstruction are also seeing active transactions. For "Cheolsan Jugong 13 Complex" in Cheolsan-dong, Gwangmyeong, where a union is scheduled to be formed in the first half of next year, 83- to 84-square-meter units traded at 1.365 billion won and 1.4 billion won this month, continuing to set new record-high prices.
In the Gwangmyeong area, more than 16,000 households are scheduled to move in over the three years through 2027. Following 4,395 households that moved in last year, 9,346 households completed their moves this year. Next year, 1,837 households and, in 2027, 4,831 households are set to move in.
The Gwangmyeong real estate market has regained momentum as end users grow hopeful that proximity to Seoul's Guro, Yangcheon and Geumcheon districts and new-build premiums will be reflected in prices. Despite being large new-build complexes, prices are lower than in Seoul, and the sharp drop in supply starting in 2028 is also cited as a factor boosting investment appeal.