“Even if there is a rush sale, it doesn’t lead to a transaction”
“The decline in the housing business in the metropolitan area like Incheon is deepening
It will continue for a long time to come… Government action is needed.”
▲ Apartment prices in Incheon have been on a downward curve for the ninth consecutive month. An apartment complex around Yeonsu-gu. (News)
Incheon apartment prices have been on a downward curve for the ninth consecutive month. Local real estate brokers explain that the adjustment is due to the fact that housing supply will increase along with the increase in the interest rate, the transaction cliff, and the weakening buying sentiment.
According to the Korea Real Estate Agency’s nationwide housing price trend survey on the 3rd, apartment prices in Incheon fell by 0.31% last week (as of September 26), breaking the biggest drop in 10 years and 3 months. This is the first time since the first week of June 2012 (-0.30%) that Incheon apartment prices fell by 0.3%.
The cumulative rate of increase this year was -2.92%, which is a shabby level compared to last year (18.24%). Incheon apartment prices have continued to fall from the fifth week of January this year (-0.04%) to the fourth week of last month, with the exception of two weeks.
Incheon apartment prices are in steep decline as Jung-gu, the only area that has remained flat, turned down in the fifth week of May (-0.01%). In Yeonsu-gu (-0.38%), Songdo New Town, Seo-gu (-0.33%) in Dangha and Cheongna-dong, Bupyeong-gu (-0.32%) in Sangok and Samsan-dong, and in Namdong-gu ( -0.25%) in Guwol and Ganseok-dong occurred.
A certified official in Sangok-dong, Bupyeong-gu said, “Although there are items for sale that are cheaper than the market price, they do not lead to a transaction as consumers’ ‘covering stones’ intensify. However, as it is still included in the adjustment target area, there is a limitation on the normalization of transactions.”
In the Incheon area, there are cases where the actual transaction price drops hundreds of millions of won. According to the actual transaction price disclosure system of the Ministry of Land, Infrastructure and Transport, the 84㎡ type of ‘Hillstate Lake Songdo 1’ in Songdo-dong, Yeonsu-gu was sold for 750 million won in August. This is 380 million won lower than the 1.13 billion won traded in November last year. Currently, the asking price is in the range of 700-800 million won.
The 84 square meter type dedicated to ‘Geumho Isu Mount Valley’ in Sangok-dong, Bupyeong-gu also signs a contract for 500 million won in August. Compared to the 700-710 million won traded in July last year, this is a drop of 200 million won in a year. The current asking price has dropped to 500 million won.
The problem is that it will be difficult to rebound for now as apartment prices are expected to be weak and even a ‘supply bomb’ is scheduled. According to Real Estate Info, a real estate market analysis company, a total of 44,334 apartments (excluding rentals) will be supplied in Incheon this year. As the number of pre-sold units in Incheon increases every year to △22,912 households in 2020 and △36,900 households in 2021, concerns about oversupply are deepening.
Kim Ji-yeon, a researcher at the Housing Industry Research Institute, said, “A significant number of open projects have been suspended or delayed due to the increase in the benchmark interest rate and the avoidance of real estate PF loans. We need an arrangement,” he said. him
