Mid-Price Apartments Disappear in Gyeonggi-do Following Seoul... Sales Proportion Under 600 Million KRW Hits Record Low

Southern Gyeonggi 71.7% Under 600 Million, Northern Gyeonggi 83.4%
Proportion of Apartments Sold Between 600 Million and 900 Million Hits Record High

From January to September this year, the proportion of apartments sold for 600 million KRW or less in Gyeonggi Province recorded the lowest level ever. As apartment prices have shown signs of recovery this year and pre-sale prices have also surged sharply, it is interpreted that the phenomenon of mid-to-low-priced apartments disappearing is spreading in Gyeonggi Province following Seoul. Accordingly, it is expected that housing insecurity among buyers who cannot afford Seoul housing and are trying to secure their own homes in Gyeonggi and Incheon will intensify.

Apartment in Sangam-dong. Photo by Yongjun Cho jun21@

On the 11th, Economic Man Lab, a real estate information provider, analyzed the Ministry of Land, Infrastructure and Transport's actual transaction price disclosure system and found that among 80,837 apartment sales transactions in Gyeonggi Province from January to September this year, 60,173 transactions were for 600 million KRW or less. The proportion of transactions under 600 million KRW was 74.4%, the lowest since the Ministry of Land, Infrastructure and Transport began compiling related statistics in 2006 (based on January to September).

The proportion of apartment sales transactions under 600 million KRW in Gyeonggi Province was over 90% before 2019, but declined to 87.3% in 2020 and 76.3% in 2021, then slightly rose to 77.7% in 2022 before hitting the all-time low this year.

The number of apartment sales transactions in Gyeonggi Province priced over 600 million KRW but under 900 million KRW was 14,887, and those priced over 900 million KRW but under 1.5 billion KRW was 4,965, accounting for 18.4% and 6.1% respectively, marking record highs. Transactions for apartments priced over 1.5 billion KRW totaled 812, representing 1.0% of the total.

In particular, a significant difference was confirmed in the proportion of mid-to-low-priced apartments under 600 million KRW between the southern and northern parts of Gyeonggi Province. This is analyzed to be because the southern part of Gyeonggi includes relatively expensive areas such as Gwacheon City and Bundang-gu in Seongnam City. Among 19,050 apartment sales transactions in northern Gyeonggi from January to September this year, 15,882 transactions were for 600 million KRW or less, accounting for 83.4% of the total.

On the other hand, during the same period, the southern Gyeonggi apartment sales volume was 61,787, with 44,291 transactions under 600 million KRW, making up 71.7%, indicating that the proportion of mid-to-low-priced apartments is lower in southern Gyeonggi.

The area with the highest proportion of apartment sales transactions over 1.5 billion KRW in Gyeonggi Province was Gwacheon City. Among 465 apartment sales transactions in Gwacheon City from January to September this year, 148 were over 1.5 billion KRW, accounting for 31.8%, and it was confirmed to be the only area in Gyeonggi with no sales under 600 million KRW.

Hwang Hansol, a research fellow at Economic Man Lab, said, "The proportion of apartments priced under 600 million KRW is expected to shrink further mainly in southern Gyeonggi, adjacent to Seoul's Gangnam area, and the price gap between southern and northern Gyeonggi may widen."

Meanwhile, Economic Man Lab's analysis of Seoul apartment transaction proportions from January to August this year showed that transactions under 600 million KRW accounted for 25.6% of total transactions. This is the lowest figure since the Ministry of Land, Infrastructure and Transport began compiling related statistics in 2006 (based on January to August). This is because although the proportion of apartments under 600 million KRW slightly increased due to last year's price decline, overall apartment prices rose this year as sales demand somewhat revived following government measures such as the launch of the Bogeumjari Special Supply.

On the other hand, the proportion of apartment transactions over 1.5 billion KRW recorded an all-time high. From January to August this year, 4,428 apartment transactions in Seoul were over 1.5 billion KRW, accounting for 17.5% of the total. The proportion of transactions over 1.5 billion KRW was 11.1% in 2019, 8.0% in 2020, 15.9% in 2021, and 17.4% in 2022.

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