Anseong Ranks First in Capital Region House Price Increase... What’s Happening at the Southern Edge of Gyeonggi?

[Asia Economy Reporter Onyu Lim] The real estate market in the area of Anseong-si, Gyeonggi Province, located at the edge of the Seoul metropolitan area, is attracting attention. Despite having a population of only 180,000 and lacking a significant metropolitan railway network, the recent apartment price increase rate in this area is the highest among cities and counties in the metropolitan area. In fact, prices of old Jugong apartments in downtown Anseong have risen by as much as 50% in just three months. This is the result of investors seeking capital gains rapidly buying apartments with official prices under 100 million KRW, following a series of transportation benefits such as the inland line of the metropolitan area.

According to the Korea Real Estate Board on the 13th, the apartment price increase rate in the metropolitan area for the second week of August recorded 0.30%. This is the highest increase rate in 9 years and 3 months since the board began compiling weekly statistics in May 2015. In particular, apartment prices in Anseong-si rose 0.94% during this period, recording the highest increase rate.

Anseong was a region left out of the rapid rise in metropolitan area housing prices last year. Being the southernmost part of Gyeonggi Province and lacking a railway network, it was evaluated as having poor accessibility to Seoul. Last year, the price change rate until the second week of August was minus 0.01%. In contrast, this year's cumulative increase rate has reached 14.24%. Since June, the weekly increase rate has become steeper, ranging from 0.5% to 0.9%.

The rapid change in the atmosphere of the Anseong real estate market is attributed to various transportation benefits. According to the 4th National Railway Network Construction Plan, the metropolitan inland line connecting Hwaseong Dongtan New Town and Cheongju Airport will be established. If the metropolitan inland line is newly built as planned, it will connect Dongtan New Town, where the metropolitan area express railway (GTX) Line A is located, within 10 minutes. The Pyeongtaek-Bubal line, connecting Pyeongtaek City and Bubal-eup in Icheon City, has also been confirmed.

Due to these benefits, investment demand aiming for capital gains is rapidly flowing in. In particular, prices of old low-priced apartments with official prices under 100 million KRW, which can avoid the acquisition tax surcharge for multi-homeowners, are soaring. A 39㎡ (exclusive area) apartment in Jueun Poonglim, Gongdo-eup, Anseong, changed hands for 130 million KRW on the 7th. This apartment had a highest actual transaction price of only 85 million KRW in May. This means a 52% increase in three months. The Jugong 1st complex 40㎡ in Ayang-dong also rose from 85 million KRW in April to 118 million KRW last month. The Jugong 38㎡ in Geumsan-dong increased from 90 million KRW to 120 million KRW during the same period.

A real estate industry official explained, "Anseong, boosted by transportation benefits, is experiencing rapid price increases centered on new constructions in Daedeok-myeon, which are preferred by actual users, along with low-priced complexes favored by investors," adding, "Apartments with official prices under 300 million KRW in eup and myeon areas can also avoid capital gains tax surcharges, concentrating demand."

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