Reversal of Sejong and Incheon, which had a big drop… Rate of increase increases as ‘foreign investors’ flock

As real demand shows signs of rebound as real demand recovers in new city areas such as Sejong, Seo-gu and Yeonsu-gu, Incheon, where the decline has been great, even ‘investors foreign’ joins and increases the rate of increase.

On the 16th, Chosun Biz analyzed statistics on areas where foreign investment increased from real estate big data company ‘Asil’ and the Korea Real Estate Agency’s national house price trend survey. As a result, the area where foreigners bought the most apartments last March was Sejong City. There were 217 transactions from non-residents in Sejong City, accounting for 34.5% of the total 628 transactions. This is the highest since March 2021, when 255 cases were recorded.

A foreigner is a person who does not live in the city or county. Of the 100 regions with the highest foreign investment in March, less than 20 places had an outside investment rate of more than 30%.

Apartment in Sejong City. /happy news

Thanks to the buying trend of foreigners, house prices in Sejong are rising sharply. Apartment prices in Sejong increased by 1.13% for a month from the first week of April to the first week of May, ranking second among 176 cities and counties. The price of 98㎡ of Hillstate Sejong River Park in Saesam 8 Complex in Sodam-dong, Sejong City, which was traded at 571 million in March, rose to 850 million won in one month.

In the industry, there is an analysis that the transaction volume has increased due to the strong purchasing power of end users with the launch of the special Bogeumjari Loan, which provides long-term low interest loans regardless of income in January. As emergency sales closed in some highly favored areas and apartment prices continued to rise, demand for investment from outsiders increased.

In Seo-gu and Yeonsu-gu, Incheon, where foreign buyers were strong across the country, house prices also rose. In Seo-gu, Incheon, which has Cheongna New Town, the number of transactions with outsiders in March was 187, the second highest in the country. This is the highest number since September 2021, when 222 cases were recorded. Yeonsu-gu, where the new town is located, ranked 6th overall with 143 cases.

In fact, the price of apartments in Seo-gu, Incheon rose by 0.35% in one month. It came 5th in the rate of increase in apartment prices in cities, counties and areas across the country. Yeonsu-gu rose 0.08%. The entire Incheon area fell by 0.13% over the month, but Seo-gu and Yeonsu-gu, where foreign buyers were strong, showed an upward trend. Cheongna Prugio 114㎡ in Cheongna-dong, Seo-gu, Incheon raised 216 million won in one month, and Songdo The Sharp 13 Complex Harbor View 116㎡ in Songdo-dong, Yeonsu-gu raised 120 million won.

Seosan City, South Chungcheong Province, which ranked 5th among outsider transactions, out of a total of 268 transactions, 148 cases (55.2%) were transactions with outsiders. External transactions, which were 27 in February alone, increased by 448% in one month. During the first week of April, apartment prices in Seosan fell by 0.47% compared to the previous week, but the decline was reduced to 0.04% in a week. During the first week of May, the reduction was reduced to 0.02%.

Songpa-gu was the area with the most outside transactions in Seoul. Of the 265 cases in March, 90 (33.9%) dealt with outsiders. As a result, house prices in Songpa-gu increased by 0.17% in one month, ranking 8th among all cities and counties. The 151㎡ Asian Athletes Village raised 450 million won in one month.

One thing is common in areas where foreign transactions are concentrated: apartment prices fell the most in the country last year. According to the Korea Real Estate Agency, apartment prices in Sejong last year fell by more than 16 percent from the previous year, the most in the country. Incheon Seo-gu and Yeonsu-gu also fell by 13% and 15%, respectively.

In the industry, this is considered to be a result of real estate regulations being eased and interest rates stabilizing at the start of this year, as a result of revived end user buying sentiments. In particular, the areas centered on new towns, which have experienced a large drop in house prices compared to other areas, are said to be moving first. As trading volume is maintained even after a rebound in areas where emergency selling has ended, outside investors who have deemed they have ‘consolidated the bottom’ are starting to buy in earnest.

Go Joon-seok, CEO of JEdu Investment Advisory, said, “Regulations have been eased since 1/3 of the government’s real estate measures, and the number of transactions and the sale price are rising at the same time, therefore the full rate is deemed to increase. a new rebound is happening.” demand is rushing Songpa, Seoul, where new apartments are concentrated, and Seosan, Chungcheongnam-do, a city behind the Daesan Industrial Complex, appear to have been chosen by insiders out as their investment value has increased. “