Preference for New Constructions Increases with Aging Houses... Bucheon Aterazai Scheduled for Supply

- Areas with over 70% of apartments aged more than 15 years... New housing supply also down 25%
- Construction starts and permits also declining... Scarcity of new apartments expected to increase, record prices rising one after another

[Bucheon Aterazai Perspective View]

New apartments are highly valued in areas with a high proportion of aging housing. Recently, a new term "Eoljuksin" (literally "freeze to death but prefer new construction") has emerged, reflecting a strong preference for new apartments among younger generations, especially in regions with a high ratio of old housing.

According to real estate data from R114, there are a total of 26 areas in the Seoul metropolitan area where the proportion of apartments over 15 years old exceeds 70%. Considering that there are 66 local governments in the metropolitan area, about 40% of these regions are experiencing housing aging.

The worsening housing aging is attributed to a supply drought. The number of new housing units in these 26 areas decreased by nearly 25%, from 37,698 units in 2022 to 28,292 units last year. This contrasts with the overall metropolitan area, where the total number of new housing units slightly increased from 181,150 units to 190,281 units during the same period.

The share of new housing units in aging areas within the total metropolitan supply has also been declining annually. The proportion of new units in these areas, which remained in the 20% range from 2020 to 2022, dropped significantly to 14.9% last year. As of the end of August this year, only 13,740 units, or 12.7%, of the 108,359 new units in the metropolitan area have been completed in these aging regions.

On the other hand, "new apartments" within old housing areas are commanding record-high prices due to strong demand and scarcity. According to the Ministry of Land, Infrastructure and Transport's actual transaction data, a 59㎡ unit in "Hillstate Xi Gyeyang" (scheduled for occupancy in March 2024) in Gyeyang-gu, Incheon, was sold last month (August) for 610 million KRW on the 25th floor, setting a new record. Gyeyang-gu has an 85% rate of apartments over 15 years old.

Meanwhile, the GS Construction consortium plans to supply "Bucheon Atera Xi" in the B2 block area of Bucheon Goean Public Housing District, Goean-dong, Sosa-gu, Bucheon-si, Gyeonggi-do, in September.

In Bucheon-si, the proportion of apartments over 15 years old reaches 76% of the total, while new apartments within 5 years account for only about 8%, indicating a high scarcity of new apartments. Considering that the aging apartment rate and new apartment rate in Gyeonggi-do are approximately 57% and 15%, respectively, Bucheon-si has a significantly higher aging rate and a lower proportion of new apartments.

Located adjacent to the Hang-dong district in Seoul, residents can enjoy various living infrastructures of both Hang-dong district and Bucheon’s original downtown. Notably, Yangji Elementary School is directly opposite the complex, ensuring safe commuting for children, and the nearby academy districts of Hang-dong and Ok-gil provide excellent educational environments.

Additionally, the complex is within walking distance of planned neighborhood parks, the 200,000㎡ Blue Arboretum?the first public arboretum in Seoul?and Goean Sports Park. Nearby natural attractions such as Cheonwangsan Mountain, Cheonwangsan Family Camping Site, and Geonji Mountain offer an eco-friendly urban lifestyle.

The interior features a 3-4 Bay slab-type cross-ventilation layout (excluding some types), providing excellent lighting and ventilation. It also includes a versatile second bedroom space (in some types) that can be used as a bedroom, dressing room, or study, and an efficient kitchen layout with an "L"-shaped kitchen connected to a utility room, enhancing space utilization.

A promotional center is currently operating in Yeokgok-dong, Wonmi-gu, Bucheon-si, Gyeonggi-do (within the Yeokgok E-Class High-End complex commercial area), and the model house is scheduled to open in September in Sang-dong, Bucheon-si, Gyeonggi-do (within the Bucheon Video Culture Complex).

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