Up 8.8% this year, Anyang's Dongan-gu tops national rankings ahead of Yongin Suji; school district appeal and rising prices in Bundang and Gwacheon drive demand shift
Apartment prices in Dongan-gu, Anyang, Gyeonggi Province have climbed sharply this year, driven by reconstruction expectations tied to the first-generation new town redevelopment program and an overflow of demand from pricier southeastern residential areas such as Seongnam's Bundang-gu and Gwacheon.
According to the Ministry of Land, Infrastructure and Transport's actual transaction price disclosure system, a 90-square-meter unit at Kkum Hansin in Pyeongchon-dong, Dongan-gu sold for 1.69 billion won (about $1.11 million) on May 30, setting a record high. A nearby 80-square-meter unit at Gwiin Maeul Hyundai Home Town also broke its previous record, changing hands at 1.47 billion won on May 23.
The data back up the trend. According to the Korea Real Estate Board's weekly apartment price index, Dongan-gu posted a year-to-date apartment sale price gain of 8.80 percent as of the second week of June — the highest in the country. Yongin's Suji-gu (8.56 percent) and Gwangmyeong (8.19 percent) followed.
The head of a licensed real estate agency in Bisan-dong, Dongan-gu said that compared with complexes in Hwaseong Dongtan-gu where units in the 30-pyeong range have crossed 2 billion won, buyers now see Pyeongchon as offering better value for money. "Dongan-gu was included in the regulated zone under the Oct. 15 measures, but there are still complexes that have not recovered their previous peaks, so buyers feel there is room for further gains," the agent said.
Hwaseong Dongtan-gu recorded a year-to-date gain of 7.19 percent. However, Dongtan-gu was established as an administrative district only in March, as part of a reorganization that created four new districts in Hwaseong, meaning its cumulative figures have been tracked only from February transactions onward — a factor that makes its reported gain appear relatively lower.
Strong residential fundamentals, particularly school districts, are widely cited as a key driver of price gains in Dongan-gu. Subway Line 4 runs through the district, and commuters using Beomgye or Pyeongchon stations can reach the Gangnam business district in roughly 40 minutes via a transfer at Sadang.
The Pyeongchon hagwon district, centered on the intersection of Gwiin-ro and Pyeongchon-daero, is home to more than 300 registered private tutoring institutes within a roughly 500-meter stretch — making it one of the most concentrated in Gyeonggi Province and denser than the well-known hagwon cluster in Junggye-dong, Nowon-gu, Seoul.
Reconstruction expectations are also pushing prices higher. The Kkum Maeul area, where units in the 30-pyeong range recently hit a record high approaching 1.7 billion won, is one of three lead districts in Pyeongchon's first-generation new town redevelopment plan. The Gwiin Block (Zone A-17) — comprising four complexes, Kkum Maeul Kumho, Hansin, Life and Hyundai — has issued a call for design bids, with the submission deadline falling today. It is considered the fastest-moving of Pyeongchon's lead redevelopment districts.
The Minbaek Block (Zone A-18), which includes four complexes — Kkum Maeul Woosung, Dong-A, Geonyeong 3rd and Geonyeong 5th — is also closing its design-selection bid today, with Korea Asset Trust serving as the project operator.
Saem Maeul, the largest of Pyeongchon's lead redevelopment districts, is also advancing through the approval process. The Saem Maeul Daewoo, Hanyang, KGM, Imgwang and Ubang complexes are pursuing a reconstruction plan that would expand the site to 4,127 units. The project designated Korea Land Trust and KB Real Estate Trust as preliminary project operators last November and plans to apply for special improvement zone designation this month.
Demand is flowing into newly built complexes as well as reconstruction projects. Most new apartments in Dongan-gu sit outside the Pyeongchon new town land development zone, keeping their prices relatively accessible and drawing a steady stream of younger owner-occupier buyers.
An 84-square-meter unit at Pyeongchon Irvine First in Hogye-dong, Dongan-gu sold for 1.237 billion won on June 4, setting a record high. A separate survey by KB Real Estate, based on KB Kookmin Bank's apartment purchase loan data for last year, found the complex was the most purchased apartment by buyers in their 30s over the course of that year.
Kim In-man, director of the Kim In-man Real Estate Economic Research Institute, said demand for suburban residential areas with good access to Gangnam had traditionally concentrated in Bundang and Gwacheon, but as prices in those areas surged, Anyang's Pyeongchon emerged as the alternative.
Kim added that among Pyeongchon new town reconstruction projects, some complexes including Kkum Maeul are regarded as having relatively sound project viability — ranking behind only Bundang's Sibeom and Yangji Maeul among first-generation new town redevelopment sites.
quq@heraldcorp.com
