Apartment Listings Near Synchrotron Accelerator in Cheongju 'Disappearing at the Speed of Light'

Shortage of Nearby Apartments Following Site Selection in Cheongju Ochang-eup
House Prices Fueled by Balloon Effect of Metropolitan Area Real Estate Regulations
Concerns Over Real Demand Buyers' Losses Due to Outsider-Led Price Increases

[Asia Economy Reporter Onyu Lim] "Since 6 a.m., our phones have been ringing off the hook. All the listings are already gone, and many homeowners who initially decided to sell have withdrawn their listings, saying they will wait and see."

As Ochang-eup in Cheongwon-gu, Cheongju-si, Chungbuk Province, was selected as the site for a multipurpose synchrotron accelerator with a national budget of 1 trillion won, a shortage of apartment listings has emerged in the nearby area. This seems to be fueling the already steady rise in housing prices in the area since the beginning of the year. On the 11th, a real estate agent near Lotte Castle Hieste in Ochang-eup said, "There are no properties available," adding, "Rumors that Cheongju is the likely site for the synchrotron accelerator spread, and even before the official announcement, buyers from all over the country purchased listings."

The concentrated interest in apartments in this area can also be confirmed through 'Hogangnono,' a nationwide apartment transaction price information application. Immediately after the government announcement, major complexes in Ochang-eup such as Lotte Castle Hieste, Hanshin The Hue Central Park, and Ochang Bando Ubora, as well as complexes in the Heungdeok-gu area of Cheongju city, simultaneously ranked within the top 20 in real-time search rankings.

According to the Korea Basic Science Institute (KBSI), Cheongju is expected to gain a production inducement effect of 6.7 trillion won, a value-added inducement effect of 2.4 trillion won, and employment creation of 137,000 jobs from hosting the synchrotron accelerator. Due to the balloon effect from real estate regulations in the metropolitan area, such as the December 16 and February 20 measures last year, apartment prices in Cheongju surged sharply from early this year, making this news akin to "pouring oil on the fire."

According to the weekly apartment trend report by the Korea Real Estate Board, Cheongju apartment prices have risen for 18 consecutive weeks since the first week of January (with a flat trend in the second week of January). For example, Doosan We've Jeweled City 2nd phase in Bokdae-dong, Heungdeok-gu, known as the leading complex in Cheongju, saw its highest monthly sale price for an 80㎡ (exclusive area) unit jump from 399 million won in October last year to 500 million won last month, an increase of nearly 30% in six months.

Investment from outsiders is also continuing. This is because the area is close to Sejong and Daejeon cities, is a managed area with unsold units and thus has almost no regulations, and the sale prices are low, making the gap between sale and jeonse prices small and facilitating gap investment. In fact, the sale price of a 99㎡ unit in Shinyoung Jeweled City 1st phase in Bokdae-dong, Heungdeok-gu, ranges from 425 million to 510 million won, with the difference from the jeonse price (300 million to 350 million won) being only about 100 million won. A representative from a local real estate agency said, "Due to strengthened real estate regulations, outsiders who find it difficult to invest in the metropolitan area are flocking to Cheongju, resulting in frequent transactions where both sellers and buyers are outsiders." In fact, in March, apartment sales transactions in Cheongju were 1,843, down 840 from 2,682 in the previous month, but purchases by Seoul residents increased from 114 to 126 during the same period.

The fever for apartment investment in Cheongju has also spread to pre-sale rights. The pre-sale rights for Hildesheim, redeveloped from the Tapdong 2 district in Sangdang-gu, soared to 55 million won for a low-floor 129㎡ unit. The premium for LH Trilochae in Mochung-dong, Seowon-gu, which will have its resale restrictions lifted on the 15th, is also expected to be formed at over 60 million won for large-sized units. This apartment complex had faced a large-scale unsold unit crisis last year.

However, as apartment prices rapidly rise led by outsiders, concerns are also being raised about the potential harm to actual homebuyers. A local real estate agent near I-Park in Gagyeong-dong, Heungdeok-gu, said, "While interest from buyers has increased due to the rapid rise in apartment prices, the prices have risen so much that transactions are not easy."

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