Daegu 59㎡, Changwon 84㎡ Over 1 Billion Won... Seoul-Regional Housing Price Reversals Emerge

Daegu, Cheonan, Jeonju, Changwon, etc.
From Large to Small-Medium Sized
Transactions Over 1 Billion Won Continue

Concerns Over 'Reverse Balloon Effect' Toward Seoul

[Asia Economy Reporter Lee Chun-hee] As housing prices rise nationwide, apartments exceeding 1 billion KRW are increasingly appearing in provincial areas. In particular, concerns are emerging that a 'reverse balloon effect' may occur, where demand for purchases returns to Seoul as apartments of the same size in some provinces surpass Seoul's housing prices.

According to the Ministry of Land, Infrastructure and Transport's real transaction price disclosure system on the 9th, there have been numerous cases of not only medium-to-large but also some small-to-medium apartments being traded at prices exceeding 1 billion KRW in various provincial areas such as Daegu, Cheonan in Chungnam, Jeonju in Jeonbuk, and Changwon in Gyeongnam.

In Deokjin-gu, Jeonju-si, Jeonbuk, the 'Eco City The Sharp 2nd Phase' 117㎡ (exclusive area) was traded for 1.1 billion KRW on the 3rd of last month. The previous highest price was 870 million KRW, but the price surged by more than 200 million KRW in just five days.

This upward trend is appearing not only in Jeonju but also in major cities across the country. The 'Chungnam Buldang The Sharp' 113㎡ in Buldang-dong, Cheonan-si, Chungnam, was traded at 1.317 billion KRW on the 18th of last month, setting a new record. Considering it was traded at 1 billion KRW in November last year, the price has surged by more than 30% in one year. In Siheung-si, Gyeonggi, the 'Siheung Central Prugio' 106㎡ was traded for 1.02 billion KRW on the 2nd, marking the first time prices exceeded 1 billion KRW in the Siheung area.

As housing prices outside Seoul rise sharply, the phenomenon of catching up with Seoul's prices is appearing not only in medium-to-large apartments but also in small-to-medium apartments. The 'Yongji The Sharp Lake Park' 84㎡ in Yongho-dong, Uichang-gu, Changwon-si, Gyeongnam, was traded for 1.08 billion KRW on the 26th of last month. Although transactions were in the 800 million KRW range as recently as August, prices have since shown a steep upward trend.

Considering that in Seoul, many outer areas still do not have apartments exceeding 1 billion KRW for the same size unless they are large-scale new apartments, this is unusual. The representative of real estate agency A in this area said, "Since the regulations were announced last month, there have been quite a few inquiries by phone or visits from Seoul," adding, "As the real estate market in Changwon has recently returned to a recovery trend, it seems that remote investments have also increased."

The upward trend in metropolitan cities is even steeper. The 'Hyosung Harrington Place' 59㎡ in Beomeo-dong, Suseong-gu, Daegu, was traded for 1.02 billion KRW on the 26th of last month, surpassing 1 billion KRW. This was just two months after it was traded for 895 million KRW.

In the metropolitan area, on the 9th of last month, the 'Pungmu Central Prugio' 84㎡ in Pungmu-dong, Gimpo-si, Gyeonggi, was traded for 820 million KRW. According to KB Kookmin Bank's monthly housing price trend, this price is higher than the average sale price of small-to-medium apartments (over 60㎡ to 85㎡ or less) in Gangbuk, which was 780.62 million KRW last month.

As provincial housing prices surge, some buyers are responding, "It might be better to aim for re-entry into Seoul." This is because, with the price of some provincial apartments, it is possible to purchase a similarly sized apartment in Seoul without a large additional burden. The government's gradual nationwide expansion and strengthening of regulations have also contributed to a 'visual illusion effect,' making Seoul's existing regulations appear relatively weak.

In fact, according to KB Kookmin Bank, Seoul's weekly apartment buyer dominance index stood at 100.4 as of the 30th of last month. When the index exceeds 100, it means there are more buyers than sellers in the market. This is the first time the index has exceeded 100 in three months since August.

Experts diagnose that as regulations have recently expanded to areas outside the metropolitan area and housing prices continue to rise nationwide, Seoul may be perceived as an attractive investment destination amid a slowdown in Seoul's price increase.

Kwon Il, team leader at Real Estate Info, said, "Real estate is largely psychological," and added, "From the perspective of wealthy provincial investors, if housing prices in the provinces and Seoul are similar, there is a high possibility that the desire to purchase real estate in Seoul will arise for investment purposes or for the residence of children who have moved to the capital."

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