Why Apartment Prices in Anseong Jugong at Gyeonggi-do's Edge Rose 50% in Three Months

Anseong, Thoroughly Left Out of the Capital Region's Housing Price Surge
With Successive Transportation Boons Like the Capital Region Inland Line, Buyers Seeking Capital Gains Follow
Newly Built Homes Also Rapidly Rising Mainly Among Actual Users

Despite the government's 'peak house price theory,' apartment prices in the Seoul metropolitan area continue to soar, with Anseong, a small city with a population of 180,000 located at the edge of Gyeonggi Province, recording the highest rate of increase. As transportation benefits such as the Seoul Metropolitan Inland Line continue to emerge, investors aiming for capital gains have been concentrating their purchases on apartments with a publicly announced price below 100 million KRW. In the case of old Jugong apartments, prices have surged so rapidly that the increase rate reached 50% within three months.

According to the Korea Real Estate Board on the 16th, the apartment sales price increase rate in the Seoul metropolitan area for the second week of August was 0.30%. This is the highest increase rate in 9 years and 3 months since the Real Estate Board began compiling weekly statistics in May 2015. In particular, apartment sales prices in Anseong City rose by 0.94% during this period, recording the highest increase rate.

Anseong was a region thoroughly neglected even amid the real estate boom in the Seoul metropolitan area last year. This was because it is located in the southern part of Gyeonggi Province, bordering Chungcheong Province, and was evaluated as having poor transportation accessibility due to the complete absence of railroads. Until around this time last year, the cumulative increase rate of apartment sales prices in Anseong was -0.01%. In contrast, this year's cumulative increase rate reached 14.24%. Especially from June to August, prices have been skyrocketing weekly by 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 Railroad Network Construction Plan, the Seoul Metropolitan Inland Line connecting Hwaseong Dongtan New Town and Cheongju Airport will be established. If the Seoul Metropolitan Inland Line is newly built as planned, it will connect Dongtan New Town, where the Seoul Metropolitan Express Railroad (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 a publicly announced price below 100 million KRW, which can avoid the heavy acquisition tax on 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 low-priced complexes favored by investors and newly built apartments in Daedeok-myeon, which are preferred by actual users. Apartments with a publicly announced price below 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.