Input 2021.02.03 06:00
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Kim Jong-in, head of the People’s Power Emergency Response Committee, visited Busan on the 1st and said, “I will actively support the construction of the new airport on Gadeokdo Island and make an effort so that the special law on Gadukdo new airport can be handled under the agreement of the opposition parties. He also said, “We will actively consider the construction of a Korean-Japanese submarine tunnel connecting Gadeokdo and Kyushu, Japan.”
Lee Nak-yeon, the representative of the Democratic Party, also visited Busan on the 29th of last month and said, “The Democratic Party will not provide any more hope torture to the citizens of Busan.”
House prices in Gangseo and Saha-gu, Changwon Jinhae-gu, and Geoje, Gyeongnam, which are considered to be the beneficiaries of the construction of the new airport on Gadeok Island, have plunged after the government announced that the new airport was canceled on November 17 last year.
According to the Korea Real Estate Agency, apartment prices in Gangseo-gu, Busan, an administrative district where Gadeok-do belongs, soared 1.36% in the second week of last December. Nearby Saha-gu rose 0.83% in the third week of December, a week later, while Jinhae-gu, Changwon rose 0.61% during the same period. Geoje, which was the date of a decline in apartment prices until November of last year, rose 0.24% in the first week of January following a turnaround in December.
However, this year, the surge has slowed somewhat. According to the Korea Real Estate Agency, the increase in apartment prices in the fourth week of January was slightly reduced, including a 0.19% increase in Busan, Gangseo, Saha by 0.28%, Changwon Jinhae by 0.18%, and Geoje by 0.16%. This is less than the rate of increase in apartment prices nationwide (0.29%). In particular, in the case of Gangseo and Saha-gu, Busan, it is in a state of breathtaking since it was designated as an adjustment target area in December last year.
However, even in the midst of the silence, the march continued. According to the actual transaction price system of the Ministry of Land, Infrastructure and Transport, the exclusive area of 84 square meters of’Myongji International New City Hoban Verdium 2nd’ in Myeongji-dong, Gangseo-gu, Busan, was traded at 850 million won on the 26th of last month and changed to the highest price ever. It was traded at 600 million won on November 23, last year, and 250 million won jumped two months after the reported price was recorded.
The 84㎡ exclusive area for’Daelim e Pyunhansesang Saha Apartment’ in Gupyeong-dong, Saha-gu, Busan was also traded at 420 million won on the 17th of last month, recording a reported price. Compared to the deal at 363 million won on December 27 last year, it rose 57 million won in 20 days.
With Gadeokdo’s new airport rising as the hottest topic in the general election, house prices in these regions are showing signs of a big jump again. In addition, it is predicted that nearby Geoje and Jinhae-gu, Changwon can see balloon effects in unregulated areas.
In the real estate market, the energy of the eve of the storm is felt. A certified official in Yongwon-dong, Jinhae-gu, Changwon, near Gadeokdo, said, “There were quite a lot of transactions from last November, but the atmosphere was recently being sold.” “There are a lot of people who think that the house price will rise when the new airport special law was introduced in February There are a lot of landlords who have an exclusive area of 84㎡ and look at the sale in the middle of 200 million to more than 300 million.”
Following the apartment, the land that will be used for the airport-related industrial development site is also attracting attention from investors, as bidders flock to the auction market. According to Jiji Auction, a court auction information company, the successful bid rates for land in Gangseo-Saha-gu, Changwon Jinhae-gu, and Geoje in Busan were 33.1%, which was significantly higher than the previous month (25.4%). The successful bid price rate (the ratio of the successful bid price to the appraised price) was 63.7%, higher than the previous month (62.2%). The average number of bidders during the same period was 3.1, up from the previous month (2.4).
Experts predict that the actualization of the construction of a new airport on Gadeok Island is likely to raise the price of local real estate once more.
Park Hap-soo, a senior real estate expert at KB Kookmin Bank, said, “If Gadeokdo new airport is established, the demand for apartments that will be used as development sites in nearby areas such as Gangseo, Saha, Sasang-gu, and Geoje will increase.” From the end of the year, good news flashed and reflected in the price, and as the new airport construction plan was materialized in the election phase, it is entering the phase of a two-stage rise.”
Myung-sook Ahn, head of the Real Estate Investment Support Center of Woori Bank, said, “Land prices will continue on an upward curve with anticipation for continuing the issue of Gadukdo new airports.” There is room for further upside, especially in non-regulated areas such as Geoje and Changwon Jinhae-gu,” he said.
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