Gyeonggi-do Surpasses Seoul: New Standards for Housing Choices

There is a growing trend to choose Gwangmyeong over areas within Seoul such as Geumcheon-gu or Daerim-dong, indicating that commute accessibility, living environment, and new construction are more critical criteria than the Seoul-Gyeonggi distinction.

For example, if you have 1 billion KRW in jeonse (lump-sum deposit) funds, you could consider an apartment around 1.5 billion KRW by adding a 500 million KRW loan.

Currently, price increases in areas around 1.5 billion KRW in Seoul are driven by actual demanders who prioritize proximity to work and residential suitability rather than investment purposes.

With Mapo apartments reaching 2 billion KRW, purchasing an apartment around 1.5 billion KRW within Seoul, even with a slight change in location, becomes a rational choice.

Therefore, possessing at least 900 million KRW in cash is the starting point for meaningful asset acquisition to enter Seoul.

An increased proportion of rental housing can lead to poor management, degraded living environments, and reduced school quality, potentially disappointing those awaiting subscriptions at the time of actual move-in.

This strategy involves preemptively securing areas with sufficient potential rather than jumping on already booming markets.

Despite receiving business approval last year, Singye-dong Woosung 2nd Apartment was traded at 1 billion to 1.05 billion KRW.

Currently, the asking price for this complex has risen to 1.7 billion KRW, with actual transactions occurring, and it has proceeded to administrative disposition approval.

This case proves the validity of an investment strategy that involves discovering undervalued reconstruction complexes and waiting long-term.

For novice investors, it is appropriate to approach verified locations like Mapo and Seongdong-gu with a long-term perspective.

This is because established locations can provide psychological stability even if prices remain flat.

Experienced investors, on the other hand, can consider more aggressive investments by identifying relatively undervalued areas.

The most important criterion for investment is accurately judging whether prices are overvalued or undervalued.

Even in good locations, prices can be temporarily suppressed depending on market conditions and timing.

Jangwi New Town and Gwangmyeong are considered areas with continuous development potential, and the outer areas of Seoul (Nodogang, Geumgwan-gu, etc.) also tend to rise along with the market at the end of an upswing.

If purchasing a new apartment is difficult due to high price burdens, considering a planned reconstruction complex as an alternative, even if it takes time, is worthwhile.

Villas have the advantage of being excluded from land transaction 허가 zones, making a strategy of purchasing a villa in a redevelopment area and holding it long-term also effective.

When investing in villas within a redevelopment area, it's advisable to avoid very old villas, as they cause significant stress due to repairs and management.

New villas within redevelopment areas are advantageous in terms of management burden, and areas designated as planned redevelopment zones should be approached with a long-term perspective of at least 10-15 years, considering the possibility of project failure.

Choosing areas where zone designation has been completed is a relatively safer investment method.

Similar to the case where many new town zones were canceled during the time of Seoul Mayor Park Won-soon, areas like Hannam New Town may require a long period of patience.

While the reconstruction excess profit recapture system is a major issue, it is not considered an obstacle strong enough to deter investment.

It is necessary to consider a strategy of utilizing purchase opportunities to reduce tax burden until 2027, when the long-term special deduction cap is maintained.