As Gwangmyeong Home Prices Surge, Bucheon Attracts Seoul Buyers... Demand Concentrates on New Apartments Near Subway Stations Amid 'New Construction Drought' [Real Estate AtoZ]

Bucheon Apartment Purchases by Seoul Residents Double in One Year

As apartment prices in Gwangmyeong, which borders Bucheon, have risen by nearly 10% this year, the buying trend is shifting toward Bucheon. This is because Bucheon offers easier commutes to Seoul and faces fewer restrictions on loans and taxation. This phenomenon, known as the "balloon effect," is driven by homebuyers seeking alternative locations with lower financial barriers. Although three subway lines connecting major business districts in Seoul pass through Bucheon, there are relatively few new apartments, leading analysts to predict that demand for newly built apartments near subway stations will continue to rise as more people move out of Seoul.

Apartment complex in Gyeonggi. Photo by Jojoon Jun

According to real estate market analytics firm Real Estate Info, which compiled monthly apartment transaction volumes from Korea Real Estate Board, the number of Bucheon apartment purchases by Seoul residents from January to May this year reached 774, more than double the 358 recorded during the same period last year. During this period, Seoul residents accounted for 20.0% of all apartment transactions in Bucheon, or one out of every five units, which is 4.4 percentage points higher than the Gyeonggi Province average of 15.6%.

The primary reason Seoul buyers are choosing Bucheon is the price gap with neighboring areas. Apartment sale prices in Gwangmyeong, which borders southeastern Bucheon, increased by 9.98% this year as of July 6, more than five times the rise in Bucheon (1.81%) over the same period. Excluding Dongtan-gu in Hwaseong, this is the third highest rate in the Seoul metropolitan area, following Dongan-gu in Anyang (10.68%) and Suji-gu in Yongin (10.20%). Real Estate Info analyzed that as Gwangmyeong home prices have climbed rapidly, housing demand has shifted to Bucheon, which allows for commutes to Seoul and faces fewer restrictions on loans and taxes.

Bucheon is connected to Yeouido, Magok, Gasan and other major business districts in Seoul via Subway Lines 1 and 7, as well as the Seohae Line. This has concentrated genuine homebuyers in Bucheon, as it allows them to maintain access to Seoul while facing fewer regulations and less financial burden.

Despite the inflow of outside demand, Bucheon suffers from a shortage of newly built apartments. According to data from Real Estate R114, as of this year, only 27,980 apartments in Bucheon are less than 10 years old, accounting for just 18.1% of the total stock. This is well below the Gyeonggi Province average for new apartments, which stands at 29.5%.

The scarcity of new apartments is directly reflected in the subscription market. For example, "Ssangyong The Platinum Onsu Station," which was offered for sale in February, saw 1,317 first-priority applications for 109 general supply units, resulting in an average competition ratio of 12.08 to 1. Applications from outside Bucheon totaled 925, far outnumbering the 392 applications from Bucheon residents.

For this reason, Real Estate Info reports that attention is focusing on new complexes near subway stations where large-scale redevelopment projects are underway. In August, Doosan Engineering & Construction and Ssangyong Engineering & Construction are scheduled to offer the "Bucheon Sosa-bon 1-1 District (tentative name)," a residential complex with 2,008 units near Sosa Station. In the Sosa Station area, a residential complex with 7,000 units will be created within a 1-kilometer radius in the future. Including projects near Sosa, Bucheon, and Yeokgok stations, the number of new units is expected to reach about 12,000.

A Real Estate Info official stated, "Due to the nature of redevelopment projects, it will take a long time before actual occupancy, so the shortage of new apartments in Bucheon is expected to persist for a while. Large-scale brand-new complexes near subway stations with good access to Seoul will continue to lead the market."

This content was produced with the assistance of AI translation services.