House price hikes stopped and deals cut off
“The price is going down, but the purchase is missing”
A view of Uiwang Park Prugio near Uiwang Station on Subway Line 1. Photo = Reporter Lee Song-ryeol
There are signs of a decline in house prices in the metropolitan area, where house prices have been on the rise due to the good news of the Metropolitan Express Railway (GTX). As buying sentiment cools in the real estate market, transactions are cut off in Gunpo, Uiwang, Dongducheon, etc. It is evaluated that the rapid rise in house prices also contributed to the loan regulation.
According to the local real estate industry on the 8th, the area of Bugok-dong, Gunpo-si, where Uiwang Station, which is mentioned as an additional stop for the GTX-C line, is located, has almost stopped trading in large-scale apartments in the second half of this year. This area was also included in the 3rd new city addition site selected by the government and was selected as the place where apartment prices rose the most in the country this year, but it was not substantial.
An official from Brokerage A in Bugok-dong said, “It has been a long time since the sale of major apartment complexes has been cut off.
In the absence of actual transactions, the asking price is in the range of 200 to 300 million won. Until the third quarter, the atmosphere was dominated by sellers on expectations of an uptrend, but in the fourth quarter, the market rapidly changed to a buyer’s advantage.
The 84 m² dedicated ‘Uiwang Station Central City (Humansia 3 Complex)’ located near Uiwang Station was sold for 750 million won in June, breaking the transaction for five months after breaking a new record price. In September, the asking price soared to 1.3 billion won, but in November, the buying trend decreased sharply, and the recent asking price fell to 950 million won. ‘Humansia 5 Complex’ also recorded a new record price of 850 million won in August, and there is no transaction. The asking price, which exceeded 1 billion won, was lowered to 800 million won.
At least, ‘Uiwang Park Prugio’, an apartment building near Uiwang Station, recorded a new price of 1.05 billion won in October and built a face, but the trade cliff is still there. The number of transactions concluded in the second half of this year in the complex of 1,068 households was limited to only 5 cases based on an exclusive 84㎡. The asking price also recently dropped to 900 million won, 150 million won lower than the reported price.
The situation near Geumjeong Station, where the GTX-C line is planned, is not much different. The area’s representative apartment, ‘Raemian Hiers’, was sold for 1.18 billion won in September with an exclusive 84㎡ area. The previous report was down by 60 million won from 1.24 billion won. After that, the transaction stopped and the asking price fell to 1.15 billion won. An official from a brokerage firm in Sanbon-dong said, “The asking price, which exceeded 1.4 billion won, continues to drop, but buyers’ response is lukewarm.”
An apartment building in Jihaeng-dong, Dongducheon-si. Photo = Reporter Lee Song-ryeol
In the outskirts of the metropolitan area, there have also been cases of actual transactions due to a fall in house prices. Dongducheon City, where foreign purchases were strong, is a typical example. The 84 m² dedicated to the Jihaeng Jihaengwon Benet in Dongducheon-si, which recorded a new record price of 410 million won in July, was traded for 340 million won last month. In the same area, an 84 m² dedicated to Songnae Jugong Complex 1 was also sold for 298 million won last month. The price is more than 50 million won lower than the 350 million won in August.
According to the weekly apartment trend of KB Real Estate, the sale price of apartments in Dongducheon fell 0.05% as of the 29th of last month. In Dongducheon City, house prices rose 38% until October of this year, with the GTX-C line Deokjeong Station overlapping with unregulated areas in the metropolitan area, and the decline was the first in the metropolitan area.
Dongducheon City was designated as a target area for adjustment at the end of August, and transactions plummeted. As the Ministry of Land, Infrastructure and Transport grouped 6 dongs in Songnae-dong, Jihaeng-dong, Saengyeon-dong, Bosan-dong, Dongducheon-dong, and Sangpae-dong in Dongducheon as target areas, the number of foreigner transactions gradually decreased from 72 in August to 38 in September and 17 in October.
An official from a local brokerage agency said, “After the designation of the area to be adjusted, the buying force from outsiders has stopped, and the asking and selling prices are falling as real-home buyers cannot afford the rising house prices. explained.
Buying sentiment in the real estate market is rapidly cooling down. According to the weekly apartment supply and demand trend of the Korea Real Estate Agency for the 5th week of November, the apartment sales supply and demand index in the metropolitan area recorded 99.3, falling below the baseline of 100. The supply-demand index, which is an index of the number of brokerage surveys and the number of items sold on the Internet, is closer to 0 from the baseline, meaning that there are more ‘sell people’ than ‘buyers’.
Housing sales volume is also declining, especially in the metropolitan area. According to the Ministry of Land, Infrastructure and Transport, the total number of housing sales in October was only 75,290. It was down 7.8% from 81,631 cases in the previous month and 18.8% from 92,769 cases in October last year. The decrease in trading volume was conspicuous in the metropolitan area. Transaction volume in the Seoul metropolitan area was 31,982, down 23.6% from the same period last year.
Oh Se-seong, reporter at Hankyung.com sesung@hankyung.com
