[Report] "Gimpo Became Geumpo"... Premium Up 3,000 Due to 6·17 Balloon Effect

Investors Flock to Gimpo Excluded from June 17 Real Estate Measures
Large Complex Pre-sale Rights and New Apartments Popular Around Station Areas
Expected Outcome... Speculation Arises on Whether Gimpo Will Be Regulated in the 22nd Measure

Hangang Metro Xi Phase 2 in Geolpo-dong, Gimpo-si, Gyeonggi-do, scheduled for occupancy in July. After Gimpo was excluded from the June 17 measures, the premium on pre-sale rights increased.

[Asia Economy Reporter Onyu Lim] "Gimpo has become Geumpo. As soon as the news came that it would be removed from the regulated area, inquiries about pre-sale rights flooded in, and I've been working until 10 p.m. for several days without even having lunch. Even the homeowners sensed this and said they wouldn't sell, even if offered 170 million won for a premium worth 140 million won."

On the afternoon of the 17th, when the government announced its 21st real estate measure, pre-sale rights for Hangang Metro Xi Phase 2 in Geolpo-dong, Gimpo, which is scheduled for move-in next month, were selling like hotcakes at real estate agency A. Although the surrounding environment is poor, it is close to the Gimpo Gold Line and has high accessibility to Seoul areas like Yeouido. The premium for a 59㎡ (exclusive area) move-in right, which was around 110 million to 130 million won earlier this month, has now jumped to 140 million to 170 million won. Excluding listings conditioned on under-the-table contracts, it was hard to find any priced at 130 million won.

As the unusual atmosphere was detected, sellers began withdrawing their listings. A representative from real estate agency B in Geolpo-dong said, "Since the article came out, buyers have been flooding in, but sellers are not answering their phones."

This was the balloon effect of the 21st 6.17 measure. When the government tightened regulations on Seoul, Suwon, Yongin, and Seongnam (Su-Yong-Seong) prices rose, and when Su-Yong-Seong was regulated, house prices in non-regulated areas like Guri, Osan, and Incheon surged. Gimpo, excluded from the adjusted target area and relatively accessible to Seoul among border areas, showed signs of a short-term price surge. This was also the result of the learned effect that "house prices in areas excluded from government regulation inevitably rise."

A large newly built apartment complex in Unyang-dong, Gimpo-si, Gyeonggi-do

Besides pre-sale rights, investors seeking gap investment also inquired about newly built apartments near stations on the Gimpo Gold Line urban railway, such as Pungmu-dong, Geolpo-dong, Unyang-dong, and Janggi-dong. In particular, Unyang-dong, where academies and commercial districts are well established, saw a significant rise in prices as available units for transaction were depleted despite the concentration of large-scale new apartments. The 59.33㎡ unit in Bando Yubora Phase 2, which traded at a high of 387 million won in April, sold for up to 410 million won this month, with current asking prices soaring to 430 million won. A representative from real estate agency C in Unyang-dong said, "For flagship complexes like Bando Yubora Phase 2 or Hangang New Town Lotte Castle, some buyers purchased without even seeing the property if gap investment was possible."

The balloon effect in areas like Gimpo and Paju, which includes Unjeong New Town, was also easily found in online communities. Seller D from Unyang-dong asked in a real estate community, "I received a deposit of 10 million won as a preliminary contract, but should I back out of the contract prepared to pay double compensation?" In the Gimpo community, tenants reported receiving notifications from homeowners that their houses had been sold even though they had never shown the house. A real estate study group focused on border areas has already been formed mainly by people in their 20s and 30s.

Yang Ji-young, director of Yang Ji-young R&C Research Institute, said, "People have become resistant to the government's real estate measures," adding, "Regulations without fundamental measures like supply inevitably cause balloon effects in non-regulated areas like Gimpo or in adjusted target areas with favorable conditions."

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