"Please Cancel My 'Shuttle Station Area' Near Samsung and SK hynix"... Surging Home Prices Lead to Contract Cancellations [Real Estate AtoZ]

"Expectations for Future Price Increases on the Rise"
Dongtan Sees 351 Contract Cancellations This Year Alone

It has been revealed that a large number of apartment purchase contracts have been canceled in Dongtan District, Hwaseong, Gyeonggi Province, where demand for high-income workers in the semiconductor industry, including Samsung Electronics and SK hynix, is concentrated.

According to Woori Bank's Real Estate Research Lab on the 24th, the number of canceled purchase contracts in Guri, Namyangju, Gwonseon District of Suwon, Manan District of Anyang, Giheung District of Yongin, and Dongtan District of Hwaseong in Gyeonggi Province reached 1,248 in the first half of this year. This represents a 21% increase compared to the same period last year. In particular, Dongtan District alone accounted for 351 contract cancellations this year, which is 28% of the total contract cancellations in major non-regulated areas of the Seoul metropolitan area. In other words, about three out of every ten contract cancellations occurred in Dongtan District.

A panoramic view of Dongtan Station Shibum The Sharp Central City Apartment in Hwaseong, Gyeonggi Province, on the 18th. Photo by Seongah Shim

Recently, Giheung District and Dongtan District have emerged as key areas in the Seoul metropolitan real estate market. This is due to the concentration of demand from high-income workers in the semiconductor industry. Anticipation for performance-based bonuses has even led to the emergence of new terms such as "Shuttle Station Area" and "Semiconductor Zone," reflecting the close connection between the semiconductor business cycle and the housing market.

According to the Korea Real Estate Board on June 15, the year-to-date housing price increase rate in Giheung District (5.99%) and Dongtan District (9.57%) exceeded the 5–9% range, recording the highest level in the Gyeonggi region. In Guri and Dongtan District, the average actual transaction price per apartment has risen by 9.3% this year compared to last year, with each apartment seeing an increase of more than 60 million won on average. During the same period, the average transaction price in Giheung District rose by about 40 million won, from 570.84 million won to 611.72 million won.

Ham Youngjin, Head of the Real Estate Research Lab at Woori Bank, analyzed, "With the recent rise in housing prices and increased purchase demand in these areas, the number of sellers canceling contracts in anticipation of further gains has also increased," adding, "Even considering the burden of double compensation, the expectation for future price increases remains high."

Furthermore, as so-called "gap investment" demand—where buyers purchase properties with existing jeonse (lump-sum deposit) tenants—has entered the market, both transaction volume and prices are showing noticeable increases. The market regards this as a typical "balloon effect." As entry barriers rise in regulated areas such as Seoul's Gangnam District, Gwacheon, and Bundang in Seongnam, demand is shifting to adjacent regions with relatively fewer regulations.

Under the current Housing Act, the designation of areas subject to adjustment or speculative zones comprehensively considers whether the housing price increase rate over a certain period exceeds the inflation rate, as well as subscription competition rates and transaction volume increases. Recent statistics show that Guri, Dongtan District, and Giheung District have already met or are close to meeting some quantitative criteria for being designated as regulated areas.

Lab Head Ham advised, "In regulated areas, the market entry barriers for loans, taxes, and housing subscriptions become higher. The rise driven by the balloon effect may lose momentum as purchase restrictions for buyers increase," adding, "It is now more appropriate to focus on actual residential value and the region's long-term competitiveness rather than on short-term capital gains."

This content was produced with the assistance of AI translation services.