“It nearly topped 800 million won, but now it’s at 600 million won”: A sigh as home prices fall for 50 months in “this neighborhood”

[Financial News] Apartment prices in Ilsan New Town have been in a prolonged downturn, surpassing the previous record of 47 consecutive months of declines.
According to KB Real Estate’s monthly statistics released on the 15th, apartment prices in Ilsanseo-gu and Ilsandong-gu, where Ilsan New Town is located, are in their longest downturn on record.
More specifically, Ilsanseo-gu has been in a downturn for 50 months, from August 2022 through September 2026. During that period, it recorded a positive monthly change only once: 0.10% in November 2023. The situation is no different in Ilsandong-gu. Monthly figures show that prices have continued to decline from a 0.02% drop in July 2022 through last September.
KB Real Estate statistics show that this downturn set a new record. The previous longest downturn lasted 47 months, from November 2009 to September 2013.
Over the 50-month downturn, apartment sale prices in Ilsanseo-gu fell by 22.82%. In Ilsandong-gu, they fell by 19.72%. Older apartments in Ilsan with an exclusive-use area of 84 square meters, which once came close to topping 800 million won, are now trading in the 600 million won range.
A bedroom community with no jobs is widely cited as the main reason for Ilsan New Town’s decline. Unlike Bundang, which has Pangyo’s business-and-residential district as its hinterland, Ilsan is not rated highly for its access to Gangnam or proximity between homes and workplaces.
Another setback is the development of large residential complexes between Ilsan New Town and Seoul. Numerous small- and medium-sized planned development districts, including Samsong District and Deogeun District, have taken shape there. Development is also underway on Changneung New Town, one of the Third New Towns.
An industry source said that if Changneung New Town is built closer to Seoul, it would inevitably have a negative impact on apartment prices in Ilsan New Town as well.
The key variable is the redevelopment of aging new towns. Ko Jun-seok, a professor at Yonsei University, said, “Redevelopment in Ilsan New Town is facing difficulties because the project’s viability is not particularly strong,” adding, “Whether the downturn continues or prices rebound will likely depend on redevelopment.”
[email protected] Lee Jong-bae Reporter