Among the five areas selected as leading districts for the first phase new towns last year, only apartments in Bundang and Pyeongchon saw an increase in prices.
According to Real Estate R114 on the 3rd, the apartment prices in Pyeongchon rose by 2.7% and Bundang by 2.6% over approximately six months from Nov. 22 of last year, before the announcement of the leading districts, to Jan. 13.
In contrast, apartment prices in Sanbon and Ilsan decreased by 1.4% each, while in Jungdong, they fell by 0.2%.
Bundang and Pyeongchon have high locational competitiveness and expectations for developments, leading to a steady upward trend in prices following the announcement of the leading districts.
However, apartment prices in Ilsan, Jungdong, and Sanbon are thought to be hindered by relatively low expectations for redevelopment, coupled with concerns over public contribution burdens, additional expense, and relocation expenses.
A representative from Real Estate R114 noted that the issues of realistic problems such as contribution expenses and relocation policies, along with local conflicts, present multiple challenges that will likely delay actual construction for a considerable time.
The first phase new town leading district project is a plan to prioritize the redevelopment of 36,000 housing units across 13 zones in the first phase new towns, including Bundang, Ilsan, Pyeongchon, Jungdong, and Sanbon.
Bundang has 10,948 housing units across three zones, Ilsan has 8,912 units in three zones, Pyeongchon has 5,460 units in three zones, Jungdong has 5,957 units in two zones, and Sanbon has 4,620 units in two zones designated as leading districts.
The first phase new town was designated as a leading district by the government last year, 33 years after its initial occupancy in 1991, marking the beginning of substantial redevelopment.
According to Real Estate R114, apartments over 30 years old in the first phase new town account for 86.5% of the total. Regionally, Pyeongchon ranks highest at 93.1%, followed by Sanbon at 88.2%, Bundang at 86.8%, Ilsan at 83.8%, and Jungdong at 81.7%.