"There are no listings, and buyers are lining up. We can only add people to the waiting list if they offer at least 20 million won more than the most recent actual transaction price. Prices change by the day, so people are even saying you can't buy a home at yesterday's price."
This is how a real estate broker in the Dongtan new town in Hwaseong, Gyeonggi Province, described the recent property market mood Wednesday. As home prices surge and buying inquiries pour in, homeowners are pulling listings or raising asking prices by tens of millions of won. Cases of prices changing right before closing are also frequent.
Dongtan apartment prices have risen nearly 4% over the past two weeks. According to the Korea Real Estate Board, apartment sale prices in Dongtan district, Hwaseong, surged 2.22% in a single week as of the 15th. This marks the highest weekly gain for a city, county, or district in about five years and six months, since the third week of December 2020 in Gongju, South Chungcheong Province (2.31%). It also ranks 10th all-time. Dongtan's cumulative apartment gain this year reached 9.57%, the highest in the capital region, even though the figure was tallied from February 1, when Hwaseong's district was separated. In particular, the pace of price increases is steep, with a 4.8% gain over the past three weeks accounting for half of this year's total.
Flagship complexes are seeing prices jump by hundreds of millions of won in a short period. A unit of 84 square meters at Dongtan Station Lotte Castle was traded at 1.98 billion won on the 16th of last month, then changed hands at 2.225 billion won about three weeks later. The current lowest asking price is around 2.3 billion won. An 84-square-meter unit at Dongtan Station Sibeom Woonam First Vill was traded in the 1.4 billion won range in April this year, then set a record high of 1.6 billion won last month, with the current asking price reaching 1.76 billion won.
There have also been cases of sellers paying back double the preliminary deposit and relisting at higher asking prices. A low-floor 84-square-meter unit at Dongtan Station Sibeom Woonam First Vill had a preliminary contract signed at 1.498 billion won, but the seller relisted it at 1.8 billion won after paying double compensation. The head of brokerage A near Dongtan Station Lotte Castle said, "Recently, cases of sellers breaking contracts by offering double compensation have occurred one after another across Dongtan." He added, "There were many cases where buyers themselves offered to raise the price by tens of millions of won, barely closing the deal."
At the center of Dongtan's recent home price surge are workers in the semiconductor industry, including those at Samsung Electronics (005930.KS) and SK hynix (000660.KS). According to on-site explanations, buying demand quickly built up over about two weeks after Samsung Electronics' performance bonus negotiations were settled, depleting listings. Expectations of improved Seoul access following the GTX-A opening are also drawing demand. Noh Si-tae, a real estate expert at KB Kookmin Bank, analyzed, "In a situation where expectations for transportation improvements are growing in Dongtan, which had good living infrastructure but weak Seoul access, the semiconductor boom added fuel."
The possibility of being designated a regulated zone also spurred buying sentiment. The interpretation is that demand from people seeking to buy homes before lending and tax regulations tighten flooded in, amplifying the price uptrend. An official at brokerage B near Dongtan Station said, "When all of Seoul and parts of Gyeonggi were tied up as regulated zones, Dongtan was excluded, which further increased transactions." He added, "Whenever speculation about regulated zone designation circulates, such as earlier this year, listings sell quickly."
However, recently, some buyers feeling burdened by the elevated asking prices have shifted to a wait-and-see stance, and transactions are slowing in some complexes. An official at brokerage C near Dongtan Station Bando Yubora IB Park 5.0 said, "As news of rising prices continues to come out, homeowners have raised asking prices, but actual customers have decreased." He added, "There are quite a few complexes where only asking prices have risen without transactions."
The jeonse market is also seeing prices rise amid a shortage of listings. Apartment jeonse prices in Dongtan district rose 0.87% this week, ranking first among cities, counties, and districts in the capital region. As existing tenants choose to renew their contracts, listings are decreasing, which is again pushing prices up.
A trend of demand spreading to nearby areas is also being detected. Some Dongtan owners are looking to switch to Bundang in Seongnam or Yeongtong in Suwon, while buyers feeling burdened by Dongtan prices are turning their eyes to Byeongjeom in Hwaseong and Giheung in Yongin. This week, Byeongjeom district in Hwaseong rose 0.43%, Bundang district in Seongnam 0.49%, Yeongtong district in Suwon 0.34%, and Giheung district in Yongin 0.31%. Nam Hyeok-woo, a real estate researcher at Woori Bank, said, "As Dongtan prices rise quickly, some owners who sold existing homes are showing movement toward switching to Bundang and Yeongtong in Suwon." He added, "New buying demand is also flowing into Giheung in Yongin and Byeongjeom in Hwaseong, which offer convenient commutes to semiconductor workplaces and have many apartments under 1 billion won, spreading the uptrend."
Meanwhile, Seoul apartment prices rose 0.27% this week, maintaining the same gain as the previous week. Seongbuk-gu (0.40%) rose the most, followed by Guro-gu (0.39%), Dobong-gu (0.38%), and Eunpyeong-gu (0.37%).
