Restricted areas to local metropolitan cities through 12-17 measures
Balloon effect increases house prices in small and medium-sized cities in non-regulated areas
The pre-sale market is also booming… 30,000 units sold in the first half
An apartment in the area of Yangsan New Town in Yangsan City, Gyeongnam, where the price of medium-sized apartments exceeded 700 million won. / Source = Naver Street View
Apartment prices in non-regulated areas in the province are soaring. Although the government expanded the regulated area to the provinces with measures against December 17 last year, it is enjoying a’balloon effect’ in areas that avoided it. Existing new apartments and the pre-sale market are showing a growing trend.
In December of last year, the government included four regional metropolitan cities, including Busan, Daegu, Gwangju, and Ulsan, as well as 37 regions including Paju City in Gyeonggi Province, Cheonan in Chungnam Province, and Changwon in Gyeongnam Province as regulated areas (Regulation Target Area, Speculative Overheating District). It was a measure to block the balloon effect in advance and reorganize the real estate market into a market focused on end users. However, as in the metropolitan area, this time apartment prices are rising in non-regulated regions of the province.
Gyeongnam area,’increased’ apartment prices in Yangsan and Gimhae
According to the actual transaction price disclosure system by the Ministry of Land, Infrastructure and Transport on the 17th, the price of a mid-sized apartment in Yangsan, Gyeongnam exceeded 700 million won. These are new apartments in Yangsan New Town in Mulgeum-eup area. A 134m2 (formerly 43 pyeong) for’Yangsan The Forest M’was sold for 730 million won this month. In the case of’Yangsan Daebang Nobleland 6th The Class’, a dedicated 116㎡ (formerly 42 pyeong) was sold for 700 million won in December last year, and 84㎡ was changed to 695 million won last month.
The exclusive 84m2 apartment price in Mulgeum-eup has been recording the reported price one after another, exceeding 500 million units one after another. Until November of last year, there was a transaction for around 300 million won, but as neighboring metropolitan cities were grouped into regulated areas, house prices surged more than 100 million won in an instant.
According to data from KB Real Estate Liveon, the average apartment price per 3.3㎡ in Yangsan, Gyeongnam, as of November before the announcement was only 6.53 million won. However, in January of this year, it is forming a market price of 7.71 million won. The price is up 10.1% in about two months. Yangsan City seems to be enjoying a considerable ballooning effect as it plays the role of Busan’s satellite city.
The same is true of Gimhae, Gyeongnam, between Busan and Changwon. The 84m2 type for exclusive use of’Gimhae Centum Doosan We’ve the Zenith’ (3435 households) in Juchon-myeon, Gimhae-si, was traded at 497 million won (21st floor) shortly after the announcement of measures in December of last year, breaking the reported price. Considering that the same housing type was sold for 339 million won (18th floor) in January of last year, the price has increased by 46.6% in about a year. Since then, the trading price has been somewhat slow, but it has maintained the mid-to-mid-end of 400 million won.
In the Chungcheong area, Asan City is benefiting from the consolidation of Cheonan City as an area subject to adjustment. The average apartment price per 3.3m2 in Asan City exceeded 6 million won. The’Hoban Summit Grand Mark’, which was sold in December last year, attracted 66,695 people to recruit 1414 households, showing an average of 47.16 to 1 in the first ranking alone. Asan City has produced the largest number of subscribers ever.
In the first half of the year, 30,000 households from local non-regulated areas appeared.
As the situation is like this, construction companies are also promoting the supply of apartments to local small and medium-sized cities. According to Real Estate Info, a real estate market analysis company, 3,247 households are expected to be sold in general in small and medium-sized cities without regulations in the first half of this year. This is an increase of 189 households from 2,158 households sold in all local small and medium-sized cities during the same period last year. By region, Chungnam was the largest with 8,970 households, followed by Gyeongnam (7529 households), Gangwon (4918 households), and Jeonnam (3536 households).
In the case of local non-regulated areas, conditions such as subscription and loan are not difficult. Excluding residential districts, anyone over the age of 19 is entitled to the 1st priority if they meet the deposit for 6 months or more after signing up for a subscription bank account and by region and area. Residents of course can subscribe regardless of whether they re-win. It is also a strong point that it is possible to resell sales rights immediately after the contract.
A bird’s eye view of’Changwon Machang Bridge Peninsula Yubora Ivy Park’ supplied from Masan Happo-gu, an unregulated area in Changwon City. / Source = Bando Construction
In Gimhae, Gyeongsangnam-do, Doosan E&C and Kolon Global Consortium will supply’Gimhae Yulha The Sky City’ to the area at 699-1 Sinmun-dong next month. There are 3764 apartment units (exclusive area 64~163㎡) and officetel 629 rooms (exclusive area 23~59㎡), totaling 4393 units. Daewoo E&C plans to sell’Gimhae Prugio High-end 2nd’ (1380 households) in 1 lot of block 2 of urban development zone in Andong District 1 A brand town of 2,780 households is expected as the successor to the first apartment last year. In Masanhappo-gu, which is an unregulated area in Changwon City, Bando Construction is planning to sell’Changwon Machang Bridge Bando Yubora Ivy Park’ (847 households) on B-1 block of Gapotaek District.
In Chungnam, POSCO E&C sells’The Sharp Tangjeong Station Centro’ (939 households) in Baebang-eup, Asan. GS E&C will supply’Gyeryongzai’ (600 households) in the Daesil District of Gyeryong City next month. The Daesil District is a mini new city of about 4,000 households created through urban development projects.
In Gangwon-do, Kumho Industries is planning to sell’Hongcheon Kumho Eullim The First’ (580 households) in the Hope District, Hongcheon-eup. This apartment was supplied in Hongcheon-gun after 7 years. In Jeongsang-dong, Samcheok-i, Doosan E&C supplies’Samcheok Central Doosan We’ve (736 households).
Hankyung.com reporter Kim Hana [email protected]