Seoul Apartment Prices Stall... 'Incheon' Housing Prices Soar

Incheon, 38 Consecutive Weeks of Increase Since Late August Last Year
Different Atmosphere from Seoul, Which Stalls Due to Economic Recession
Yeonsu-gu Hyundai 2nd Complex Rises by 50 Million Won in 5 Months

The above photo is not related to the article below. (Photo by Yonhap News)

[Asia Economy Reporter Moon Jiwon] Although Seoul apartment prices have fallen for seven consecutive weeks due to the economic downturn caused by the novel coronavirus disease (COVID-19), prices in Incheon are soaring thanks to various development prospects.

According to the Korea Real Estate Board on the 17th, apartment prices in Incheon have been rising for 38 consecutive weeks since the end of August last year. This contrasts with the situation in Seoul, where apartment prices have stalled due to continuous government regulations and economic deterioration. In fact, Incheon housing prices rose by an average of 1.61% per month even in March, when the real economy downturn caused by COVID-19 fully began.

In the weekly KB Housing Market Trend survey by the private research institute KB Real Estate Live On, Incheon apartment prices increased by 0.15% as of the 11th, up from 0.12% the previous week, expanding the rate of increase. In Seoul, most areas showed a flat trend, and the Gangnam 3 districts (Gangnam, Seocho, and Songpa) continued to decline.

This upward trend in Incheon was driven by Yeonsu-gu (0.37%) and Seo-gu (0.20%). Yeonsu-gu, classified as a non-regulated area, saw overall housing prices rise due to concentrated buying sentiment in Songdo International City. Complexes around Okryeon-dong in Yeonsu-gu also saw increased purchase inquiries influenced by the opening of the Suin Line in August and the news of the Okgol redevelopment (Songdo Station area urban development) starting within the year.

According to the Korea Real Estate Board survey, Incheon apartment prices rose by 0.24% as of the 11th, up from 0.22% the previous week, also expanding the rate of increase. Bupyeong-gu (0.38%), which benefits from the extension of Line 7 and the commencement of the metropolitan area express railroad (GTX) Line B, showed a significant increase. Gyeyang-gu (0.32%), where prices are relatively low or there is anticipation of redevelopment projects in areas like Hyoseong and Gyesan-dong, and Namdong-gu (0.29%), where expectations for improved transportation conditions are high, also influenced Incheon's upward trend.

In the case of Hyundai 2nd Complex in Yeonsu-gu, Incheon, with an exclusive area of 84.6㎡, actual transaction prices were in the 260 million KRW range until January, but this month, except for lower floors, transactions are occurring in the early 300 million KRW range. The current asking price is between 310 million and 350 million KRW, rising by up to 80 million KRW in five months. Similarly, Samsan Town Jugong 1 Complex in Bupyeong-gu, Incheon, with an area of 51.86㎡, was mainly traded in the late 200 million KRW range earlier this year, but now actual transaction prices have significantly increased to between 340 million and 360 million KRW.

The subscription market in Incheon is also hot. At Hillstate Songdo The Sky in Yeonsu-gu, Incheon, 58,763 applicants applied for 50 units released through a non-priority subscription on the 11th. A non-priority subscription means a random lottery is held to select winners for units that remain unclaimed due to contract cancellations or disqualification of general sale winners.

As the pre-sale rights market overheats in non-regulated areas like this, the government plans to ban the resale of pre-sale rights in most areas of the metropolitan area including Incheon and local metropolitan cities such as Daejeon from as early as the end of July. Currently, resale of pre-sale rights is prohibited in speculative overheated districts including Seoul and regulated areas such as Suwon in Gyeonggi Province, but in non-regulated areas, trading is allowed six months after winning a subscription, which has been criticized for encouraging speculative demand, prompting this measure.

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