Is the GTX Bubble Bursting? Apartment Prices in Anyang and Uiwang, Gyeonggi Drop Sharply

[Asia Economy Reporter Kim Hyemin] House prices in areas such as Anyang and Uiwang in Gyeonggi Province, which surged last year due to the positive impact of the 수도권광역급행철도 (GTX, Metropolitan Area Express Railway), are rapidly declining. The increase in interest rates combined with expectations of falling house prices has significantly dampened buying demand. Even redevelopment project benefits are not having an effect.

According to the Korea Real Estate Board on the 11th, as of the 4th, apartment sale prices in Uiwang, Gyeonggi Province, fell by 0.18% compared to the previous week, significantly below the metropolitan area average of -0.04%. Anyang recorded a decline of -0.03%.

Uiwang was one of the regions with the highest house price growth rates last year. However, this year, prices have fallen by 0.54% up to May. Compared to a 12.96% increase during the same period last year, house prices are rapidly declining. Anyang is also under strong downward pressure, dropping from 8.38% to -0.32% during the same period.

These areas experienced a rapid surge in house prices in a short period due to the inclusion of Indeogwon Station on the GTX-C line. As a result, even complexes not close to Indeogwon Station overheated to the extent that they included 'Indeogwon' in their complex names. However, as buyer sentiment in the real estate market has frozen, the bubble is quickly deflating starting from these areas where prices surged.

According to the Ministry of Land, Infrastructure and Transport's real transaction price disclosure system, an 84.99㎡ unit in Indeogwon Donga Ecovil in Poil-dong, Uiwang City, which set a record high price of 900 million KRW in August last year, has been continuously sold at lower prices and was sold for 730 million KRW on the 2nd of this month. This is a drop of 170 million KRW in less than a year. Similarly, an 84㎡ unit in Indeogwon Daewoo in Dongan-gu, Anyang City, was traded last month at 860 million KRW, nearly 400 million KRW lower than the highest price of 1.24 billion KRW recorded last August.

Redevelopment project issues also seem unable to withstand downward pressure on house prices. Until last year, house prices rose whenever reconstruction or remodeling projects achieved progress at each stage. The head of a real estate agency in Gwanyang-dong, Dongan-gu, Anyang, said, "Despite schedules lined up for remodeling association establishment and contractor selection, few people inquire about buying," adding, "Properties that were priced at 700 million KRW earlier this year have dropped to 610 million KRW as urgent sale prices."

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