On the 27th, when heavy snow fell, the pilot apartment in Seohyeon-dong, Bundang-gu, Seongnam City, selected as the first phase new town redevelopment pilot district. Photo by Park Seungwook

"After the announcement of the Bundang new town pilot district, there were many inquiries about purchases. In less than two hours after the announcement, we received 10 calls just about the 30-pyeong complexes, so I ended up memorizing the asking prices for apartments of this size."

"Today alone, three houses have paused transactions... It is expected that the prices of complexes in this area will rise."
"Especially here, due to anticipation about the pilot district, homeowners have even paused transactions just before contracts. Today can be said to be the cheapest day for house prices."

On the 27th, with heavy snow falling, the phone at a real estate agency near Siheom Woosung Apartment and Hyundai Apartment in Seohyeon-dong, Bundang-gu, Seongnam-si, Gyeonggi Province, rang non-stop. Representatives of real estate agencies near Yangji Maeul 1st Complex Kumho and 2nd Complex Cheonggu in Sunae-dong, as well as Saetbyeol Maeul Sambu Apartment and Dongseong Apartment in Bundang-dong, also reported, "We've been getting calls continuously since the afternoon." These three areas were designated as leading integrated reconstruction districts for Bundang New Town by the Ministry of Land, Infrastructure and Transport that afternoon.

Expectations for rising home prices have led to increased purchase inquiries. Especially, areas like Siheom Woosung Apartment in Seohyeon-dong are seen as having higher price growth potential than other areas. The head of a real estate agency in Seohyeon-dong said, "Until now, there was talk that Siheom Hanshin Apartment next door was more likely to be selected as a leading district, and this was reflected in the prices," adding, "With this announcement, Woosung Apartment has also been designated, so the expectations will be reflected even more strongly in the prices."

Siheom Hanshin Apartment, which is closer to Seohyeon Station than this area, was considered more likely to become a leading district, and its asking price for an 84m² unit reached up to 1.8 billion KRW. However, Woosung Apartment, which received less attention, had lower asking prices. The same size unit at Woosung Apartment is currently listed for 1.45 to 1.6 billion KRW. The agency head especially noted, "Seeing that three homes put off transactions just today, I expect prices in this area to rise going forward."

In Bundang-dong, apartments like Saetbyeol Maeul Sambu are already seeing transactions put on hold or listings withdrawn. The head of a real estate agency in Bundang-dong commented, "Even before the designation, there was a trend of listings being withdrawn here, and now that it's a leading district, homeowners will be even more proactive in holding off on transactions and watching the situation."

He added, "Even before, due to expectations for leading district designation, homeowners sometimes put off deals right before signing. Today is probably the lowest price you'll see for homes here."

According to real estate big data platform 'Asil', as of the 27th, the number of apartment listings in Bundang-dong, which includes the newly designated leading districts, was 147, a 16.9% decrease from June 27 (177 listings). During the same period, Sunae-dong saw a 3.0% decrease (from 276 to 268 listings), while Seohyeon-dong saw a slight increase of 0.7% (from 418 to 421 listings).

An 84m² unit at Saetbyeol Maeul Sambu Apartment was traded for 1.275 billion KRW on October 13. According to the C real estate agency, the lowest-priced listing for the same size unit is now 1.35 billion KRW.

The manager at B real estate agency in Sunae-dong said, "Recently, the sale prices of Yangji Maeul 1st Complex Kumho and 2nd Complex Cheonggu have already risen significantly due to expectations about leading district designation," adding, "There's a high possibility that prices will rise further, but for now, homeowners will likely watch the situation. Just because homeowners raise their asking prices doesn't mean buyers will purchase right away."

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The manager explained, "In fact, after the government announced the leading district designation this year, prices rose until summer but have recently stagnated. Now that they've been selected as leading districts, prices could rise further due to reconstruction expectations, but we'll have to see how the price expectations of buyers and sellers align."

According to the manager, an 84m² unit at Yangji Maeul 1st Complex Kumho recently traded for 1.75 billion KRW. This transaction has not yet been registered on the Ministry of Land's official transaction price system. In February, the same size unit traded for 1.48 billion KRW.

A resident of Siheom Hanshin Apartment in Seohyeon-dong said, "I've listed my home for sale, and now that it's a leading district, I plan to keep track of how many buyers come to view it." He intends to wait and see actual demand before raising the asking price.

There was a cautious attitude regarding the amount of the reconstruction cost-sharing. All three real estate agency representatives said, "So far, we've only been collecting preliminary consent forms, and as we start collecting official consent, the cost-sharing issue will become clearer." However, one agency head commented, "At this point, homeowners expect the cost-sharing to be at least 300 million KRW."

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