Apartment prices in Hwaseong Dongtan, Yongin Giheung and Guri, which were recently added to land transaction permit zones, continued to climb. While Dongtan's gains slowed somewhat, Giheung and Guri extended their increases, and adjacent unregulated areas including Hwaseong Byeongjeom, Suwon Gwonseon and Namyangju also showed strength. Rather than cooling after the regulatory designation, buying demand appears to be spreading to surrounding areas.
According to the weekly apartment price trends for the first week of July released on July 9 by the Korea Real Estate Board, Seoul apartment sale prices rose 0.30% as of July 6, up from 0.27% the previous week. Gyeonggi Province also saw its gains widen from 0.19% to 0.23%. The Seoul metropolitan area rose from 0.20% to 0.22%, and nationwide prices increased 0.11% from the previous week.
Trends diverged among the newly regulated areas. Hwaseong's Dongtan district saw its increase narrow from 1.46% the previous week to 1.29% this week, but it still maintained the highest rate of gains in the country. In contrast, Yongin's Giheung district widened its increase from 0.39% to 0.56%, and Guri from 0.30% to 0.64%. The Korea Real Estate Board said gains in Dongtan were led by large complexes in Bansong and Yeongcheon-dong, while Giheung and Guri rose around major complexes.
Adjacent areas not included in the regulated zones also rose. Hwaseong Byeongjeom's increase widened from 0.16% the previous week to 0.25%, and Suwon Gwonseon from 0.25% to 0.26%. Namyangju also extended its gains from 0.16% to 0.21%. The possibility had been raised that demand would shift to adjacent areas after the Dongtan, Giheung and Guri regulations, and the first round of statistics has confirmed strength in some of those areas.
The rise in Suwon's Yeongtong district, an existing regulated area, was particularly notable. Yeongtong apartment prices jumped from 0.41% the previous week to 1.19% this week. Analysts note that Yeongtong shares a living zone with Dongtan, which was newly designated a land transaction permit zone, and has a relatively large supply of apartments priced under 900 million won, making the financial burden lighter compared with high-priced homes. Despite being a regulated area, buying demand flowed into complexes in price ranges relatively less affected by lending regulations, driving the wider gains. The Korea Real Estate Board said increases were centered on Yeongtong and Mangpo-dong.
Seoul also continued its upward trend. Seongbuk district rose 0.51%, posting the highest increase in Seoul, followed by Guro district at 0.50%. Gains were also pronounced in major districts north of the Han River, including Jungnang at 0.39%, Gwangjin at 0.38%, Gangbuk at 0.37% and Dongdaemun at 0.36%. In the Gangnam area, Songpa and Gangdong districts each rose 0.34%.
The jeonse (lump-sum deposit lease) market also maintained its upward trend. Nationwide apartment jeonse prices rose 0.12%, with the Seoul metropolitan area up 0.20% and Seoul up 0.31%. Seoul jeonse prices saw their increase widen slightly from 0.30% the previous week to 0.31%. This reflects continued jeonse demand centered on preferred complexes with good living conditions, such as those near subway stations, in strong school districts and in large complexes.
