Pyeongtaek Rises After Clearing Unsold Units... Popular Complexes See Premium Surge

Balloon Effect in Pyeongtaek Due to Gyeonggi-do Regulation Tightening
Premium of Several Million Won on Sale Rights Near Jije Station

[Asia Economy Reporter Moon Jiwon] Until last year, the housing market atmosphere in the Pyeongtaek area of Gyeonggi-do, known as a representative unsold housing graveyard in the metropolitan area, has completely changed. In popular pre-sale complexes, premiums of tens of millions of won have been added to the pre-sale rights, leading to an analysis that the balloon effect of government regulations has spread to this area as well.

According to the industry on the 26th, 'Jije Station The Sharp Central City' in Jije-dong, Pyeongtaek, which is about to lift the pre-sale rights resale restriction next month, recently saw a premium close to 100 million won. This apartment, subject to a six-month resale restriction, had a pre-sale price of around 428 million won for an 84㎡ (exclusive area) unit at the time of last year's sale, which sparked controversy over high prices.

A representative of real estate agency A in the area said, "At the beginning of the year, the premium was talked about around 35 to 50 million won, but the price jumped significantly within two to three months." The reason for the price increase is attributed to the location right next to Jije Station, where Subway Line 1 and SRT stop, attracting high interest from outside investors, according to brokerage offices.

Additionally, the agreement signed at the end of last month among local governments in Gyeonggi-do to extend the metropolitan area express railway (GTX) Line C to Jije Station is also cited as a background for the rise in pre-sale rights prices. A representative of real estate agency B in the area explained, "With Suwon, Anyang, and Uiwang designated as regulated areas in the February 20 real estate measures, interest in Pyeongtaek has further concentrated as a balloon effect."

In fact, the pre-sale rights for the 'Hillstate Jije Station' apartment located next to Central City are also known to have a premium of 60 to 70 million won currently.

Although Pyeongtaek has faced difficulties due to a surge in unsold units in recent years, demand has reportedly increased significantly recently, centered around complexes near Jije Station and the Godeok New Town. 'Godeok Paragon 2nd Phase' and 'Godeok Richville Parkview,' which were sold last year amid many unsold units, are now all sold out.

According to the weekly apartment price trend by the Korea Real Estate Agency, apartment prices in Pyeongtaek had been declining since October 2017 but turned to an upward trend from the end of last month, recording increases of 0.39%, 0.35%, and 0.14% over the past three weeks, respectively.

Some expect that demand will further increase in Godeok New Town, where Samsung's 1st and 2nd semiconductor plants, the world's largest semiconductor production facilities, are operating, and the 2nd to 4th plants are planned for expansion. Currently, Jeil Construction is preparing to launch 'Jeil Punggyeongchae 2nd Edu(Edu)' next month in this area. A representative of real estate agency C in the area said, "As housing prices in Godeok New Town are rising due to increased interest from buyers recently, the atmosphere in the new pre-sale market is likely to change."

This content was produced with the assistance of AI translation services.