House Prices in 2nd Phase New Towns Also Waver... Falling Transactions Surge in Wirye and Gwanggyo Following Dongtan

Mars Real Estate Price Increase Rate Declines for 2nd Week at -0.02%
Yeongtong Also Turns Negative at -0.01%
Seongnam Sujeong-gu Essentially Stops Rising at 0.01%

Seoul apartment complex view (Photo by Yonhap News)

[Asia Economy Reporter Ryu Tae-min] Recently, the upward trend in housing prices has stalled, causing the housing prices in the second-phase new towns in the Seoul metropolitan area to falter. Along with the government's tightening of loan regulations, the accumulated fatigue from the rapid rise in housing prices appears to have weakened buying demand. In particular, not only in the outskirts of Gyeonggi Province but also in second-phase new towns such as Dongtan, Gwanggyo, and Wirye, which had led the housing price surge, a series of declining transactions have emerged, leading to analyses that the downward trend in apartment prices could spread to central areas.

According to the weekly apartment price trend for the third week of this month (as of the 20th) announced by the Korea Real Estate Board on the 27th, the apartment price increase rate in the Seoul metropolitan area was recorded at 0.07%. This is a 0.03 percentage point decrease from the previous week's 0.10%. Private statistics show a similar trend. According to KB Real Estate's weekly housing market trend, the apartment price increase rate in the Seoul metropolitan area for the third week of this month was 0.10%, down 0.02 percentage points from the previous week.

In particular, the weekly increase rate in areas including the second-phase new towns has either slowed down or turned negative. The apartment sales price increase rate in Hwaseong City, Gyeonggi Province, where Dongtan New Town is located, recorded -0.02% during this period, marking two consecutive weeks of negative growth following the previous week's -0.02%. In Hwaseong, the increase rate was as high as 0.38% as recently as the third week of October (as of the 18th), but the growth rate has since slowed, dropping to the 0.10% range in November.

Yeongtong District in Suwon City, Gyeonggi Province, where Gwanggyo New Town is located, has also turned to a downward trend. The apartment sales price increase rate in Yeongtong District for the third week of this month was -0.01%, a 0.09 percentage point decrease from the previous week's 0.08%. In Yeongtong, Suwon, the increase rate was 0.49% in the second week of October two months ago, but it has consecutively declined over nine weeks as follows: 0.42% → 0.37% → 0.33% → 0.28% → 0.25% → 0.19% → 0.13% → 0.08% → -0.01%. In Seongnam City's Sujeong District, which includes part of Wirye New Town, the increase rate has slowed from 0.16% in the third week of October to 0.07% in the third week of November, and 0.01% in the third week of this month, effectively halting the upward trend.

Song Seung-hyun, CEO of Urban and Economy, explained, “In new town areas such as Dongtan, Gwanggyo, and Wirye, housing prices have risen significantly along with Seoul, leading to accumulated price fatigue among buyers. Loan regulations and interest rate hikes have also influenced this, creating a pattern where the downward trend in housing prices is moving toward central areas.”

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