Where Have the Apartment Listings in 'Seoul·Gyeonggi' Gone... The More They Are Hit, The Scarcer They Become in the Capital Area

Local Buying Demand Turns Back to Seoul Metropolitan Area
Listings Decrease in Dongducheon, Goyang Deogyang-gu, Gyeonggi
Similar Trend in Seoul... Gangnam Reconstruction Complexes Jump
Listings Increase in Ulsan, Busan, Gyeongnam, Slowing Price Rise

[Asia Economy Reporter Moon Jiwon] Since the government significantly expanded regulated areas to the provinces, there has been a clear trend of real estate investors returning to the Seoul metropolitan area.

While the upward trend in housing prices in the provinces has recently slowed, the supply of properties in Seoul and other metropolitan areas is decreasing, and prices are rising. With the upcoming Seoul mayoral by-election in April, expectations for price increases are growing even in reconstruction complexes in the Gangnam area of Seoul, leading analysts to predict that this trend will continue for the time being.

According to real estate big data company 'Asil (Apartment Actual Transaction Price)' on the 14th, the areas with the largest decrease in apartment listings nationwide over the past month were Dongducheon and Deogyang-gu in Gyeonggi Province. During this period, listings in Dongducheon dropped from 886 to 435, a 51% decrease, and in Deogyang-gu, Goyang, from 2,410 to 1,199, a 50.3% decrease. Other areas in Gyeonggi such as Uiwang, Suwon, Anyang, and Yangju also saw a sharp decline in listings.

Apartment listings in Seoul have also decreased. Dongjak-gu (-26.0%) and Nowon-gu (-24.6%) saw about a 25% reduction, and all 25 autonomous districts experienced a decrease in listings compared to a month ago. A decrease in listings means that transactions have been completed or sellers have withdrawn their properties, which is interpreted as an increased expectation of rising housing prices.

On the other hand, in major provincial areas where apartment prices rose significantly in the second half of last year due to the 'balloon effect,' listings are somewhat increasing. In Ulsan, listings increased by 19.3%, from 6,977 to 8,327 during this period. Gyeongnam (7.3%) and Jeonnam (6.9%) showed similar trends. By city and district, notable increases were seen in ▲Gangseo, Busan (131.8%) ▲Seongsan, Changwon, Gyeongnam (51.1%) ▲Paju, Gyeonggi (47.6%).

Most areas with a sharp increase in listings were designated as adjusted target areas in December last year. At that time, as real estate regulations in the metropolitan area were strengthened and buying demand shifted to metropolitan cities and other provinces, the government designated Uichang-gu, Changwon as a speculative overheating district and included 36 areas nationwide, including Busan and Ulsan, as adjusted target areas.

(Photo by Yonhap News)

In particular, the Korea Real Estate Board and the Ministry of Land, Infrastructure and Transport have recently launched their first planned investigations targeting illegal activities such as illicit loans, gifts, and up/down contracts for mid- to low-priced apartments under 900 million KRW in the provinces, intensifying efforts to prevent speculation in provincial areas.

Industry experts analyze that the balloon effect is driving housing prices up by concentrating demand from the metropolitan area to the provinces and back to the metropolitan area. In fact, Seoul and Gyeonggi showed the largest decreases in urgent sale apartments nationwide, with 47 and 40 fewer units respectively compared to 10 days ago, while Busan (122 units) and Gyeongnam (77 units) saw the largest increases in urgent sale apartments nationwide. This is a significantly different atmosphere compared to the second half of last year.

Apartment prices in Seoul are also on the rise. Analyzing transactions reported to the Real Estate Actual Transaction Information and Seoul Real Estate Information Plaza, 52% (65 out of 125) of apartments traded this year up to the 12th were recorded at new high prices.

Especially with the Seoul mayoral by-election coming up in April, immature expectations that reconstruction regulations may be eased have spread, causing listings in major reconstruction complexes such as Jamsil Jugong Complex 5 in Jamsil-dong, Songpa-gu, Eunma Apartment in Daechi-dong, Gangnam-gu, and Hyundai Apartment in Apgujeong to disappear.

Kwon Il, head of the research team at Real Estate Info, explained, "In Seoul, if there are issues such as high-density development near subway stations, housing prices are more likely to rise. The Seoul mayoral by-election can also act as a factor driving prices up."

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