[이코노믹리뷰=우주성 기자] Gangwon’s real estate market, which was neglected by the ‘Buddha’ this year, is unusual. External investment demand is also detected in major areas such as Wonju and Chuncheon, which are adjacent to the metropolitan area. Locally, concerns are mixed about whether the rise in the jeonse price rate and the ballooning effect of regulations that have been expanded nationwide are affecting local areas such as Gangwon.
Increase in transactions in Wonju and Chuncheon in’adjacent areas’
The average trading price of Gangwon-do is increasing in the second half of the year. According to KB Real Estate, in the case of Gangwon, the rate of change in trading increased from July this year and maintained around 0.2% until October, and reached 0.63% in November, increasing the increase more than three times.
Gangwon’s 4Q apartment purchase advantage index is also rising. According to KB Real Estate, as of October 12, Gangwon’s overall buying advantage index was 54.7, but on November 30 it rose to 99.8. The greater the buying sentiment than selling a home, the higher the buying advantage index.
Chuncheon and Wonju, which are close to the metropolitan area, are also remarkable. In Chuncheon City, the rate of change in monthly trading prices increased from 0.22% in July to 0.75% in November, and during the same period, Wonju also increased from 0.11% to 0.42%. In Gangneung City, the rate of change in the trading price from 0.2% in July rose to 0.71% in October this year.
In particular, external demand for the region is also increasing. According to the Korea Real Estate Agency, in the statistics of apartment purchases in Gangwon-do from August to October this year, the number of apartment purchases in Gangwon-do by residents outside of Gangwon-do was 1841, accounting for 31% of the total transactions. In the case of Chuncheon City, 28.9%, and Wonju also accounts for 36.7% of all purchases by residents other than Gangwon-do. In particular, in Chuncheon, the proportion of purchases made by non-Gangwon-do residents in August rose from 22.3% to 34.3% in October.
Apartment prices in Chuncheon and Wonju are also on the rise. According to an intermediary in the’Onui Lotte Castle Sky Class’ complex in Chuncheon, which moved in in 2015, the apartment is sold at a price of 60 to 70 million won higher than three months ago. “The price of 84㎡ is about 450 million won. There are purchase inquiries from Seoul, Gyeonggi-do as well as Daegu. It is not known whether it will rise in the future, but investors continue to enter.” The broker of the’Shinsung Geunhwa Smile’ apartment in the neighborhood where he moved in in 2007 said, “In the case of this apartment, only 59 square meters are left. The ask price is 200 million won. Medium and large-sized sales are not coming out well. There is no object, and there is also an influence that has been steadily going out for several months.”
A contractor near Namchuncheon Station said, “Due to the small area of construction, the demand for cheap apartments is also increasing. Chuncheon people are also starting to buy because of the influx of external investors.”
Wonju, which had a lower rate of increase compared to Gangneung and Chuncheon, has recently changed. It is argued by neighboring companies that external investors are buying more for low-cost apartments in Wonju. In fact, according to the Ministry of Land, Infrastructure and Transport, an area of 84 square meters dedicated to’Easy the One’ in Wonju was updated on the 17th to 322 million won.
In particular, in the case of Wonju, it is explained that purchases and inquiries are increasing, centering on apartments with good occupancy conditions within the innovation city. “In Wonju or Chuncheon, access to the metropolitan area is the best in Gangwon-do. In addition, there is an increasing demand for inquiries from investors in the metropolitan area, such as Seoul, who believe that there is room for an increase in low-cost apartments in favorable areas such as innovative cities.”
According to Asil, an actual real estate information company, 8 of the top 10 complexes in the Gangwon-do area with the most transactions from November 1 to December 7 were apartments located in Wonju. The remaining two were Chuncheon and Sokcho, respectively.
‘Gap Investment’ is a leader in the rise of the jeonse price
As the jeonse price ratio (the jeonse price compared to the selling price) rises due to the 2nd Lease Act, a gap investment phenomenon is also appearing, mainly in some large-scale large stock complexes.
According to KB Real Estate, the rate of change in apartment jeonse prices in Gangwon-do turned upward from this year, rising from 0.1% in July to 0.52% in November. The jeonse rate is also on the rise. According to the Korea Real Estate Agency, the jeonse rate in Gangwon-do in July was 79.8% to 80.6% in November, exceeding 80% in a row following October.
In particular, Chuncheon and Gangneung have the highest apartment rental rates among local governments nationwide excluding parts of Jeollanam-do. In November, the apartment rental price rate in Chuncheon averaged 85% and Gangneung 87%. Wonju is also recording a jeonse price rate of 78.6%, up 2 percentage points from July.
Local real-estate companies point out that the increase in the jeonse rate is also one of the reasons for raising the transaction and asking price.
A contractor near Onui Lotte Castle Sky Class said, “The gap is usually between 100 million won and 120 million won. Even in the middle of this month, there was a person who traded the property of the jeonse. In some cases, the sale and sale are also traded on the condition of setting a charter.”
Another nearby contractor also said, “In Chuncheon, there are often complexes where the jeonse rate is 90% for some apartments, so there are external investors who have invested in gaps around complexes that are worth the investment. Sales with a gap of about 30 million won go out quickly. It is possible that some end users in the region will suffer damage.”