Home prices in Suji-gu, Yongin are rising rapidly, led by apartment complexes undergoing remodeling. Demand is concentrating on older, relatively affordable apartments boosted by expectations of remodeling upgrades.
According to the Korea Real Estate Board on Monday, Suji-gu in Yongin, Gyeonggi Province recorded a 6.44% increase in apartment sale prices this year, the highest gain in the Seoul metropolitan area. Analysts attribute the surge to demand shifting toward homes priced at 1.5 billion won or below — less affected by mortgage regulations — combined with development expectations from the semiconductor cluster project. The appeal of residential areas near SK hynix (000660.KS) and Samsung Electronics (005930.KS) facilities is also cited as a factor driving buying interest.
Remodeling complexes are fueling both transaction volume and price gains simultaneously. According to the Ministry of Land, Infrastructure and Transport's real transaction price disclosure system, 305 of 1,662 apartment sales in Suji-gu during the first quarter this year — 18.4% — involved remodeling apartments. Remodeling apartments also ranked first in transaction volume for nine consecutive months from July last year through March this year.
Buying interest is concentrating on complexes where projects are advancing quickly. Choip Village Apartment (1,620 units), which began resident relocation on February 2 this year and is the fastest-moving remodeling project, maintained the top spot in transaction volume from December last year through March. In February alone, 51 units changed hands.
