No Exceptions for New Buildings... New Apartment Prices in Gyeonggi Drop by Hundreds of Millions

'sanseongyeok forestia' complex

[Asia Economy Reporter Kim Min-young] The bubble in newly built apartment prices, which had driven the rise in housing prices, is rapidly deflating. Due to the impact of interest rate hikes and economic recession, the downward trend in housing prices continues, with some newly built apartments in Gyeonggi Province being traded at prices reduced by hundreds of millions of won. In recent years, demand had concentrated on new apartments nationwide due to a supply shortage, but compared to older apartments, the lack of development prospects such as reconstruction and remodeling has sharply weakened buying demand.

According to the Korea Real Estate Board's apartment sales price index on the 20th, the sales price index for newly built apartments in Gyeonggi Province that are five years old or less (based on the date of use approval) was 99.9 in September, down 1.67% from 101.6 in the previous month. An index below 100 means that apartment sales prices are lower than the reference date of June last year. The price of newly built apartments in Gyeonggi Province has been declining for ten consecutive months since turning downward in December last year.

Considering that the nationwide sales price index for newly built apartments five years old or less was 100.1 in September, down 1.23% from the previous month, the decline in Gyeonggi Province is larger than the national average. Excluding local areas, compared to the metropolitan area (100.3) and Seoul (101.9), the price decline in newly built apartments in Gyeonggi Province is more pronounced. This is because the preference for new apartments had strengthened due to supply shortages, causing prices of apartments five years old or less to rise significantly, but as demand has cooled in the recent real estate downturn, price declines are accelerating from the metropolitan area and local outskirts.

In fact, some complexes where prices surged after move-in are being traded at prices reduced by hundreds of millions of won. 'Sanseong Station Forestia' in Sujeong-gu, the landmark of Seongnam's old town, saw its 84㎡ unit traded for 1.035 billion won (20th floor) in September, down 520 million won from 1.558 billion won (24th floor) traded in June 2020.

The 84㎡ unit of 'Gwanggyo Joongheung S-Class' in Woncheon-dong, Yeongtong-gu, Suwon, was traded for 1.45 billion won (16th floor) last month, down 350 million won from 1.8 billion won (17th floor) in November last year.

Similarly, the 84㎡ unit of Gwanggyo The Sharp in Woncheon-dong, Yeongtong-gu, was sold for 1.1 billion won (19th floor) on August 24. This is 290 million won lower than the highest price transaction of 1.39 billion won (26th floor) in August last year.

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