The government has designated southern Gyeonggi Province as a regulated zone in an effort to cool housing prices, but homebuyer interest remains concentrated on the semiconductor industry belt. Dongtan, in particular, produced the most-viewed apartment nationwide even after the regulations were announced, sustaining strong interest.
According to Hogangnono, a real estate platform operated by Zigbang, the apartment with the most unique visitors in the second quarter this year was Dongtan Station Lotte Castle in Hwaseong, Gyeonggi Province. The complex drew 170,374 views, ranking first nationwide. An 84-square-meter unit at Dongtan Station Lotte Castle traded for 2.225 billion won on the 4th of last month, marking a record high.
Ranking second was Jije Station Semiconductor Valley Prungchae Urbanity (138,137 visitors), which leverages its proximity to jobs and the Pyeongtaek semiconductor industry belt. Third place went to Summit The Hill (108,433 visitors), which recorded high subscription competition rates despite controversy over its high sale prices following its offering in May. The renewed interest is attributed to a recent unranked subscription for remaining units.
Following them, Helio City, Olympic Park Foreon, and Seongbok Station Lotte Castle Gold Town ranked fourth through sixth, while La Clache Xi The Pine, the first general offering complex in the Noryangjin New Town; Hillstate Yeongtong in Suwon; the newly offered Hwaseong Dongtan 2 District Block C27; and Acro River Sky were included in the top 10.
According to the real estate industry, after Samsung Electronics' labor and management agreed on performance bonuses and mortgage loan support on May 27, apartment prices in Dongtan surged by 300 million to 400 million won within two weeks. As a result, some homeowners who had sold their homes at low prices have canceled their contracts, paying double the deposit, and then put the properties back on the market—cases that continue to occur.
Kim Eun-sun, head of Zigbang's Big Data Lab, analyzed, "In the second quarter, expectations for expanded semiconductor industry investment grew, significantly raising interest in complexes near industry belts such as Dongtan and Pyeongtaek." She added, "Despite higher sale prices, demand continues for newly offered complexes with strong locations and future value."
Triple Regulations Amid Soaring Prices... Loans Also Tightened
As the overheating continued, the government simultaneously designated Hwaseong's Dongtan District, Yongin's Giheung District, and Guri City as areas subject to adjustment, speculative overheating districts, and land transaction permit zones on the 30th of last month.
With their inclusion as regulated zones, the loan threshold also rose sharply. The loan-to-value (LTV) ratio for those without homes was lowered from the previous 70% to 40%, and those who received credit loans exceeding 100 million won became unable to purchase homes in the area for one year. Gap investment using jeonse loans (a Korean lease system requiring a large lump-sum deposit instead of monthly rent) also became effectively difficult.
For example, when purchasing a home worth 900 million won, a mortgage loan of up to 600 million won was previously possible, but after the regulations the limit is reduced to a maximum of 360 million won.
Experts anticipated a short-term cooling effect on overheating. Ham Young-jin, head of Woori Bank's Real Estate Research Lab, told Yonhap News, "There is a possibility that buying sentiment will somewhat calm, centered on new or station-area complexes that have surged in recent months." He forecast, "Over the next six months to a year, effects such as reduced investment demand and shrinking transaction volume may appear."
However, Nam Hyeok-woo, a researcher at Woori Bank's Real Estate Research Institute, predicted, "As there is a shortage of jeonse and monthly rental listings, low-priced complexes within the region may see continued buying driven by actual demand."
Regulatory Effect Begins... Balloon Effect Also Emerges
In the actual market, regulatory effects are gradually appearing. According to the weekly apartment price trends for the first week of July (based on the 6th) released by the Korea Real Estate Board on the 9th, Hwaseong's Dongtan District rose 1.29% from the previous week, recording the highest increase nationwide, but the pace of gains appears to have somewhat slowed since the regulations took effect.
By contrast, nearby Suwon's Yeongtong District rose 1.19%, expanding its increase about threefold from the previous week, while Seongnam's Bundang District (0.48%), Seongnam's Jungwon District (0.45%), and Gwangmyeong City (0.44%) also continued their strength.
Analysts in the real estate market note that while the regulations may curb transactions in the short term, the preference centered on the industry belt is likely to continue for the time being as long as expectations from the expansion of AI and semiconductor industries persist.
