Honey, I think I shouldn't have taken out a loan and bought it... Waking up to the house prices dropping sharply, I scream.

Mr. Kim, who lives in Songdo, Incheon, checks the real estate app on his smartphone every day with a pounding heart. Mr. Kim and his wife bought a new apartment in Songdo five years ago, and every morning they wake up to falling house prices, which makes them feel anxious.

The real estate market in Songdo International City, considered one of the three major international cities in Incheon along with Cheongna and Yeongjong Island, remains in a slump. Although many believe that the bottom has been reached after house prices plummeted due to rising interest rates, the general consensus is that the market is still stagnant.

According to the Ministry of Land, Infrastructure and Transport's Real Transaction Price Disclosure System on the 17th, the exclusive 84㎡ unit of 'The Shap Marina Bay' in Songdo-dong, Yeonsu-gu, Incheon, was recently traded at 570 million won. It soared to 1.245 billion won in early 2022 but dropped by over 600 million won, effectively halving in value.

The nearby 'e-Pyeonhan Sesang Songdo' exclusive 84㎡ was recently sold for 620 million won. Compared to the actual transaction price at the end of 2021 (1.05 billion won), it has dropped by over 400 million won.

The situation in the center of Songdo is also the same. The exclusive area of 84㎡ for 'Songdo The Sharp First Park F13-1BL' was traded for 945 million won last month. It recovered to 1.05 billion won in September of last year, raising hopes of a rebound, but it has fallen back below 1 billion won.

The situation is similar for the 84㎡ exclusive unit of 'Songdo Central Park Prugio.' This size was traded at 1.3 billion won in December 2021, but it dropped to 800 million won in February 2023. Since then, as low-priced buying interest entered the market, it rebounded to 1.185 billion won in December last year, and although it was adjusted to 875 million won earlier this year, it has again entered the 1.1 billion won range.

The apartment prices in Songdo International City, Incheon, are struggling to recover due to the effectiveness of government loan regulations and the significant impact of real estate policy uncertainties caused by the impeachment situation. Additionally, the increase in apartment supply in the Incheon area has not kept up with demand, which is another factor. Last year, 5,231 units of apartments were occupied in Yeonsu-gu, Incheon, the highest among all autonomous districts in Incheon. This year, 3,774 units are also scheduled for occupancy.

Of course, there are also predictions that Songdo apartment prices will rebound soon. This is because the Incheon Songdo International City section of the 수도권광역급행철도 (GTX) B Line is scheduled to break ground this July. GTX B is an 80.1 km route connecting Incheon Songdo International City to Maseok in Namyangju. The Ministry of Land, Infrastructure and Transport announced that it is conducting preliminary consultations with relevant agencies such as the Incheon Free Economic Zone Authority, Incheon Transportation Corporation, and Yeonsu-gu Office to obtain permits necessary for construction, including road occupation permits and excavation permits.

In terms of educational environment and school district, Chadwick International School, a prestigious international school, is located in Zone 1. The total tuition fee from kindergarten to high school exceeds 600 million won, earning it the nickname "noble school." In Zone 1, also called the "Daechi-dong of Songdo," there are not only Chadwick International School but also Incheon POSCO High School, an autonomous private high school, and Shinjeong Middle School, which has a high rate of admission to specialized and private high schools. Zones 1 and 2 have large-scale hagwon (private academy) districts, creating strong demand among parents with children.

In these location conditions, many apartments in the Songdo area exceeded 1 billion won based on the 84㎡ exclusive area, which is called the national standard, during the rapid rise in housing prices in 2021-2022. However, due to the impact of high interest rates, the real estate market has entered a recession, and with strengthened loan regulations dampening buyer sentiment, transactions have continued to decline by several billion won compared to the peak.

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An apartment worth over 1.2 billion won after three years has dropped to 600 million won.

This might not be just a story unique to Songdo...