While Seoul apartment prices continue their firm uptrend, home prices in Hwaseong's Dongtan-gu surged 0.60% in a single week. As Samsung Electronics and SK hynix paid out performance bonuses, housing demand has risen around semiconductor hinterland areas. Combined with expectations for an expanded metropolitan transit network, strength in the southern Gyeonggi region has continued, raising the possibility that the area could be additionally designated as a regulated zone. Jeonse prices are also maintaining a steep upward trend, with this year's cumulative increase reaching six times last year's level, intensifying the rental housing crunch.
According to the Korea Real Estate Board on Wednesday, Seoul apartment sales prices in the first week of June rose 0.25% from the previous week, the same pace as the prior week. Gyeonggi rose 0.12%, the greater metropolitan area 0.14%, and the nation as a whole 0.07%.
In Gyeonggi, Hwaseong's Dongtan-gu jumped 0.60%, the largest gain among major metropolitan areas. Gwangmyeong (0.43%), Seongnam's Sujeong-gu (0.42%), Seongnam's Jungwon-gu (0.37%), Anyang's Dongan-gu (0.35%) and Guri (0.34%) also showed strength. "While buyer inquiries are somewhat sparse in some areas, price-rising transactions continue to occur steadily centered on new, large-complex, and station-adjacent developments," a Korea Real Estate Board official said. "Seoul overall maintained an upward trend."
The rise in Dongtan-gu apartment sales prices is attributed to the semiconductor industry boom. Samsung Electronics employees, who will receive performance bonuses of up to 600 million won, have entered the housing market, supporting the price gains. The buying momentum has spread beyond the Dongtan Station area such as Cheonggye and Yeoul-dong to areas near the southern lake park, Dongtan 1 New Town, and the Byeongjeom area. "Expectations for a boom in the semiconductor industry are driving continued price strength in residential hinterland areas of southern Gyeonggi," said Nam Hyuk-woo, a real estate researcher at Woori Bank. "In Dongtan in particular, demand is joining from those anticipating future price increases who want to buy early while leasing out the property."
Dongtan-gu has expanded its weekly gains since Hwaseong was reorganized into a four-district system in February this year, recently setting new record-high growth rates for three consecutive weeks. After rising 0.46% in the third week of May and 0.49% in the fourth week, it climbed 0.60% this week, once again breaking its highest level since the district's establishment. Its cumulative increase this year reaches 5.11%. In fact, the 84-square-meter unit at Dongtan-gu's "Dongtan Station Lotte Castle" traded at 2.05 billion won last month, setting a record high. That is 450 million won higher than the 1.6 billion won transaction price at the start of the year. "As actual transaction prices rise fearsomely, there are even cases of homeowners canceling contracts by paying double compensation," an official at a Dongtan-gu brokerage said. "With a shortage of listings, it is difficult to buy even when one wants to."
Yongin's Suji-gu (8.38%), Seongnam's Bundang-gu (6.21%), Suwon's Yeongtong-gu (5.75%) and Yongin's Giheung-gu (5.52%) — areas in the "shuttle-station belt" (combining shuttle buses and station proximity) served by shuttle buses used by Samsung Electronics and SK hynix employees — also posted cumulative increases this year exceeding 5%.
Seoul apartment prices recorded a 0.25% rise, the same as the previous week. Among the Gangnam 3 districts, Songpa-gu rose 0.28%, while Gangnam-gu and Seocho-gu each gained 0.21%, maintaining a firm uptrend. The Gangnam 3 districts and the so-called "Han River belt" of Yongsan, Gwangjin and Gangdong — where price gains had stalled under the government's multi-home owner regulations before recovering — are analyzed to have played a decisive role in People Power Party candidate Oh Se-hoon's election as Seoul mayor in the nationwide local elections held on the 3rd. Oh's campaign pledges, which emphasized continuity with existing city policies such as redevelopment and reconstruction, drew support from Gangnam-area voters sensitive to development expectations.
While the Gangnam area continues its firm uptrend, the northeastern districts are also strong. Dongdaemun-gu (0.37%), Seongdong-gu (0.35%), Gangbuk-gu (0.35%), Seongbuk-gu (0.34%) and Jungnang-gu (0.29%) all rose together. A shortage of jeonse listings and the burden of rising jeonse prices are stimulating non-homeowner tenants to switch to buying, while some switching demand from existing Seoul residents is also flowing in. Areas with relatively good price accessibility, including Gangseo-gu (0.31%), Yeongdeungpo-gu (0.31%) and Dongjak-gu (0.25%), also continued their upward trend.
Jeonse prices have continued to rise, acting as a factor pushing up sales prices. Seoul jeonse prices rose 0.29% this week, a larger gain than the previous week's 0.26%. Songpa-gu jumped 0.50%, centered on large complexes in Jamsil and Sincheon-dong, while Seongdong-gu (0.48%), Dobong-gu (0.47%), Seongbuk-gu (0.43%) and Nowon-gu (0.41%) also showed strength. Seoul's cumulative jeonse increase so far this year stands at 3.77%, about six times the level of the same period last year (0.65%).
With home prices rising sharply this year in Dongtan-gu as well as Yongin's Giheung-gu (5.52%) and Guri (6.86%), the possibility is being raised that these areas could be additionally designated as regulated zones or land transaction permit zones. "If areas are additionally designated as regulated zones in the future, price adjustments or transaction stagnation could appear, so it is necessary to watch for policy changes," researcher Nam said.
