Despite Sales Decline in the Capital Area... Why Is Icheon 'Steadfast'?

Gyeonggi Falls 0.01%, Icheon Maintains 0.16% Growth Rate
Transportation Benefits + Non-Regulated Area Effect
"Will Ultimately Follow the Trend, Caution Against Premature Buying"

[Asia Economy Reporter Kim Hyemin] While apartment sale prices in most areas of the Seoul metropolitan area have turned downward, the Icheon region in Gyeonggi-do continues to maintain a high rate of increase, drawing attention. As a non-regulated area with recent transportation benefits, it is withstanding downward pressure; however, there are also warnings that premature investment is risky since it is likely to eventually follow the market trend.

According to the Korea Real Estate Board on the 11th, in the first week of February (as of the 7th), apartment sale prices in Icheon City, Gyeonggi-do, showed the same 0.16% increase as the previous week. This contrasts with the negative price changes recorded in the Seoul metropolitan area and Gyeonggi-do. Icheon is the only city in Gyeonggi-do to record an increase rate in the 0.1% range.

There have also been places where housing prices have risen this year. The Hills State in Galsan-dong, with an exclusive area of 84㎡, was traded last month for 498 million KRW, surpassing the record high of 425 million KRW reported in July last year. Similarly, Galsan Hwaseong Park Dream 84㎡ in the same neighborhood rose from 433 million KRW to 463 million KRW during the same period.

The solid upward trend in Icheon’s real estate market appears to be influenced by the fact that it is one of the few remaining non-regulated areas in the Seoul metropolitan area. Currently, there are a total of six places in the metropolitan area, including Icheon, that are not subject to regulations such as loan or resale restrictions. Due to this, Icheon’s housing price increase rate even rose to the 0.5% range in October to November last year.

It is also interpreted that the fact that Bubal-eup in Icheon is the northern terminus of the Jungbu Inland Railway, which extends to Chungju, contributes to withstanding downward pressure. This railway opened in December last year, and by transferring at Bubal Station to the Gyeonggang Line, one can travel through Pangyo to Gangnam. To the south, transfers to the Chungbuk Line are now possible at Chungju Station.

Yang Ji-young, head of R&C Research Institute, said, "Icheon is located on the outskirts of Gyeonggi-do and has been relatively overlooked, but interest seems to have increased due to the combination of non-regulation and transportation benefits," adding, "As Seoul and other metropolitan areas have risen significantly, demand may have shifted to relatively cheaper places."

In non-metropolitan areas as well, non-regulated regions such as Gangwon and Jeju are showing relatively less pronounced declines. The apartment sale price increase rate in Gangwon Province was 0.05% in the first week of February, rising by 0.01 percentage points from the previous week. Jeju also rose from 0.03% to 0.08%. This contrasts with the Seoul metropolitan area, which has shown a decline for two consecutive weeks.

However, there are also warnings to be cautious about premature purchases in these areas. Director Yang said, "Unless there is a groundbreaking benefit, it will be difficult to maintain a solo upward market," and added, "As prices rise, these areas could be designated as regulated zones, so this possibility must also be considered."

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