Panic Buying Triggered by Jeonse Crisis Shakes Even the Previously Neglected Ilsan Housing Prices

Seoul Accessibility and Underrated Charm
Ilsan Dong-gu and Seo-gu Transaction Volume Increased 65% and 110% Last Month
Baekma1 Samsung 133㎡ in Madu-dong
Rose by Hundreds of Millions in One Month
12-Year Unsold Inventory Also Resolved

[Asia Economy Reporter Donghyun Choi] The transaction market in Ilsan New Town, once considered a representative area excluded from rising housing prices in the Seoul metropolitan area, is stirring. As apartment prices in the outskirts of Gyeonggi Province surged due to 'panic buying' triggered by the rental crisis, the undervalued appeal has been highlighted, leading to a sharp increase in transaction volume and a series of record-high price complexes.

According to the Gyeonggi Real Estate Portal on the 15th, apartment transaction volumes in Ilsan Dong-gu and Ilsan Seo-gu, Goyang City, were recorded at 624 and 11,152 cases respectively as of that day last month. This represents an increase of 65% and 110% compared to the previous month. Considering that the reporting deadline for November contracts is still about half a month away, this is a noticeable upward trend. Ilsan Dong-gu includes Janghang, Madu, Jeongbalsan, and Baekseok-dong in Ilsan New Town, while Ilsan Seo-gu includes Daehwa and Juyop-dong. This is a higher figure than the 36% increase in transaction volume in nearby Paju City, where a balloon effect has been occurring due to recent government regulatory area designations. It also contrasts with the transaction situations in Seongnam City, which includes Bundang New Town (11% increase), and Gimpo City, designated as a regulated area (56.5% decrease).

As transaction volumes increase, the housing price rise in the Ilsan area is also steep. According to the weekly housing market trend by KB Real Estate Live On, as of the 7th, Ilsan Seo-gu rose by 1.36% and Ilsan Dong-gu by 1.29%, ranking among the top apartment price increase rates in the metropolitan area following Paju (1.39%). The rise in housing prices in Ilsan is understood to have taken off in earnest around mid-last month. As housing prices were hardly controlled despite strengthened government regulations, anxiety that it must be done now stimulated demand, and the recent severe rental crisis brought in buying demand from tenants living on the outskirts of Seoul, which increased housing prices, according to local brokerage industry sources.

In fact, in complexes with good locations, some units have risen by several hundred million won within about a month, setting record-high prices. The Baekma 1 Complex Samsung 133㎡ (exclusive area) in Madu-dong, a cram school-dense area, was sold for 740 million won on the 13th of last month but rose to 830 million won in just 10 days, and it is reported that transactions have been made for 1 billion won this month. The highest listed price currently registered on Naver Real Estate is 1.1 billion won. The representative of A Real Estate Agency in this area said, "Gimpo and Ilsan Dong-gu, recently included in the regulated areas, actually have little difference in terms of accessibility to Seoul," adding, "If it is the same regulated area, the price increase reflects the judgment that Ilsan, with superior infrastructure and relatively cheaper prices, is better."

Doosan We've the Zenith 170㎡ in Tanhyeon-dong, near Tanhyeon Station on the Gyeongui-Jungang Line, surpassed 1 billion won for the first time in the complex at 1.035 billion won last month. This apartment remained unsold for about 12 years since its sale in 2008 due to the global financial crisis. The complex's location on the outskirts of the new town was also considered less favorable. However, as the Ilsan real estate market revived recently, sales were completed earlier this month. A representative of B Real Estate in Tanhyeon-dong said, "As apartment prices around Paju Unjeong Station rose and listings ran out, inquiries for apartments in this area have increased significantly," adding, "Even unsold complexes have been fully sold, so there are not many listings."

Although Ilsan New Town has been inhabited for nearly 30 years, it has received little attention due to almost no redevelopment or remodeling prospects, overshadowed by public land development districts such as Samsong, Wonheung, Hyangdong, Jichuk, and Janghang in Goyang City, and the 3rd new town Changneung district. It was even overshadowed by apartments in Deogyang-gu, which were built around the same time in nearby Haengsin district. In fact, as of March this year, the median sale price of apartments in Deogyang-gu was 381.5 million won, surpassing Ilsan Dong-gu (381 million won) and Seo-gu (305 million won).

However, local residents expect that housing prices could rise if transportation infrastructure expands continuously. Ilsan is on the A line of the Seoul Metropolitan Express Railroad (GTX), which is progressing the fastest among the projects, and Kintex Station is scheduled to be completed in 2023. Once this line is completed, accessibility to the Seoul Gangnam area, which has been weak, will be greatly improved. Extensions of Line 3 (Daehwa~Unjeong), Goyang Line (Goyang City Hall~Siksa-dong), operation of the Daegok-Sosa Line to Ilsan, and extension of Incheon Line 2 to Ilsan are also underway.

Experts predict that the upward trend in areas on the outskirts of Seoul, such as Ilsan, will continue for the time being. Seojinhyung, president of the Korea Real Estate Society (professor at Gyeongin Women's University), said, "After Seoul, local areas are rising, and then the metropolitan area housing prices rise again based on that," adding, "Money tends to flow to places with fewer regulations or rising value, and Ilsan has such expectations. Recently, even Seoul residents are being pushed out, so unless supply is met, this trend will continue."

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