“If I had listened to you and bought it, it would have been a big deal”… 800 million apartments became ‘half price’

“If I had listened to you and bought it at that time, I would have been really dizzy. An acquaintance of mine who bought an apartment because of the popularity of the second house said that it was difficult to rent a house without being able to sell it.

This is a conversation between a couple in their 60s who recently met at a restaurant in Sokcho, Gangwon-do. The ‘second house’ fever that blew in Gangwon-do in 2020-2021 has faded. Prices of apartments in Sokcho, a representative city that has attracted attention as a second house, are slowing down. Most of the money (premium) attached to the sale right has also disappeared. A local real estate brokerage official said, “Due to the continued real estate market downturn since last year, the demand for second houses has disappeared, and the price has also fallen.”

According to the Ministry of Land, Infrastructure and Transport’s actual transaction price disclosure system on the 7th, a sales contract was signed for 84㎡ exclusively for ‘Hillstate Sokcho Central’ in Jungang-dong, Sokcho-si in March for 385 million won. In January of last year, another 84 square meters, although not in this area, was traded for 815 million won, but compared to this, it has fallen to half.

The 84㎡ dedicated to Sokcho Cheongho High Park in Cheongho-dong was also traded directly for 400 million won on the 21st of last month스포츠토토. This area was traded for 650 million won in December 2021, but the price is 250 million won less than this. Dongmyeong-dong ‘s 84㎡ exclusive for ‘e Comfortable World Youngrangho’ changed hands last March for 385 million won. This area, which soared to 520 million won in December 2021, fell by 135 million won in two years.

Property prices are also sluggish. Dongmyeong-dong ‘Sokcho Lotte Castle in the Sky’ exclusive 84㎡ pre-sale rights were traded on the 14th of last month for 433.42 million won. In March of last year, the area traded up to 560.36 million won, but it fell by more than 100 million won. Dongmyeong-dong’Sokcho Ocean Xi’ exclusive 84㎡ was also sold on the 14th of last month for 492.93 million won. This is the area that was traded up to 734.72 million won in October 2021.

A certified brokerage official in Jungang-dong explained, “For a while, existing apartments, pre-sale rights, and occupancy rights were actively traded due to the demand for second houses, but when interest rates rose last year and the real estate market stagnated, the second house craze went in.”

The general decline in sales prices is having a negative impact on the jeonse price. The 84㎡ exclusive for ‘Sokcho Lotte Castle in the Sky’, which started moving in last February, was lowered to 240 million won in May. Recently , it has recovered to the level of 280 million to 290 million won, but the site’s explanation is that it has continued to be weak.

A certified brokerage official in Dongmyeong-dong said, “Even in April and May, it was difficult to find demand for charter rentals, let alone sales, so the rental price fell a lot.”

The second house is a kind of leisure house. One or multiple homeowners who already own a house have set up another house in the countryside or suburbs to rest on the weekend. At the time of the second house craze, a lot of outsiders flowed into the Gangwon-do real estate market, but now they have disappeared.

According to the status of apartment sales by residence of the Korea Real Estate Agency buyer, as of August 2021, the proportion of foreign sales in Gangwon-do reached 50.33%. This proportion fell to 9.02% in November last year, but rose slightly to 13.32% as of May this year.

A certified brokerage official in C in Cheongho-dong said, “As the market was stagnant, there were quite a few foreign investors who bought houses for the purpose of second houses and then sold them again because they could not hold out.” It is a situation where things go around and around between them,” he hinted.

For the time being, there is a prospect that investment demand in the Gangwon-do real estate market will be weak. This is because there are many opinions that investment is ‘premature’ as the market downturn continues.

An official from D-certified brokerage in Sokcho-si said, “It will take quite a long time for the investment market in Gangwon-do to revive in a situation where the Seoul real estate market has not yet fully recovered.” There was a lot of investment in living accommodations, etc. Investors who are bitten by profitable real estate are actually a bigger problem,” he said.

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