House Prices Soar, Incheon Also Buzzing... Last Year’s Apartment Transactions Hit Record High

Last Year’s Trading Volume Reached 121,226 Transactions... Highest Ever Since 2006
Active Sales Transactions in Geomdan New Town, Songdo, and Cheongna International City

[Asia Economy Reporter Ryu Tae-min] Last year, the number of apartment sales transactions in Incheon exceeded 120,000 for the first time, marking an all-time high. Despite most areas in Incheon being designated as regulated zones, steady apartment buying demand has kept transactions active.

On the 25th, real estate research firm Realtoday analyzed real estate statistics from the Korea Real Estate Board and found that the total number of apartment sales transactions in Incheon Metropolitan City last year was 121,226, the highest since statistics began in 2006. This figure is 35.6% higher than the previous record high of 89,379 transactions in 2019.

By region, transactions were active mainly in new towns with many new apartments, such as Geomdan New Town, Cheongna, and Songdo International City. In particular, Seo-gu recorded the highest number of sales transactions with 39,310 cases. This was followed by ▲Yeonsu-gu with 19,529 ▲Bupyeong-gu with 17,279 ▲Michuhol-gu with 14,109 ▲Namdong-gu with 12,652 transactions.

As apartment sales have become more active, apartment prices in Incheon have also continued to rise. According to the Korea Real Estate Board’s nationwide housing price trend survey, the monthly apartment price change rates in Incheon Metropolitan City last year were ▲0.21% in January ▲0.53% in February ▲2.44% in March ▲1.50% in April, and 0.71% in December. Notably, the 2.44% increase recorded in March was the highest monthly rise ever.

Competition for new apartment subscriptions is also becoming increasingly fierce. According to the Korea Appraisal Board’s subscription home survey, the first-priority subscription competition rate for apartments sold in Incheon last year was 29.54 to 1, more than three times the 8.34 to 1 rate in 2019 and about five times higher than the 6.36 to 1 rate in 2018.

Industry insiders attribute the high transaction volume to “panic buying” triggered by the rapid rise in Seoul housing prices and the influx of non-homeowners exhausted by the jeonse (long-term lease) crisis moving out of Seoul to Incheon. In fact, according to Korea Real Estate Board statistics, the number of Seoul residents purchasing apartments in Incheon last year was 11,833, a 48% increase from 7,992 in 2019.

Expectations for improved transportation conditions also appear to have had a significant impact. Incheon is part of the GTX (Greater Seoul Metropolitan Express Railway) B and D lines, which will improve transportation conditions in the long term. GTX-B runs from Songdo, Incheon, through Yeouido, Seoul Station, Cheongnyangni, and extends to Maseok in Namyangju. Although GTX-D has not yet been finalized, proposed routes from Gyeonggi-do (Geomdan to Hanam) and Incheon (Incheon Airport to Bucheon and Gimpo to Bucheon) both include Incheon.

A Realtoday official said, “As the enthusiasm for home ownership spreads, apartment sales transactions are active mainly in areas of Incheon that offer convenient commuting to Seoul and well-established living infrastructure. A high volume of sales transactions indicates a solid demand base and high residential preference, so it would be wise to keep an eye on new complexes being launched in Incheon this year.”

In Seo-gu, Incheon, Geumseong Baekjo plans to launch “Geomdan New Town Yemiji First Foret” in April at Geomdan New Town AB3-2 block. The complex will consist of 10 buildings ranging from 2 basement floors to 25 floors above ground, with a total of 1,172 households and exclusive areas ranging from 76 to 102 square meters. Additionally, Woomi Construction will introduce “Geomdan New Town Woomirin Parkview” in the same Geomdan New Town. The complex will be composed of 370 households in Phase 1 (AA8 block) and 810 households in Phase 2 (AB1 block), with exclusive areas of 59 and 84 square meters.

In Michuhol-gu, a GS Construction consortium plans to launch “Yonghyeon Xi Crest” in April at Yongmaru District 1 block. The complex will consist of 17 buildings ranging from 2 basement floors to 34 floors above ground, with a total of 2,277 households and exclusive areas from 59 to 84 square meters. Daelim Construction will also launch “e-Pyeonhansesang Juan Edusummit” in the Juan-dong area of Michuhol-gu. This complex will have 6 buildings ranging from 2 basement floors to 24 floors above ground, with a total of 386 households and exclusive areas from 63 to 84 square meters.

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