"My Home Is in the 'Shuttle Zone' Near SK hynix, Please Cancel the Contract"... Surge in Cancellations Amid Soaring Home Prices [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—such as those at Samsung Electronics and SK hynix—is concentrated.

According to Woori Bank Real Estate Research Lab on the 24th, the number of sales contract cancellations in Guri, Namyangju, Gwonseon District in Suwon, Manan District in Anyang, Giheung District in Yongin, and Dongtan District in Hwaseong reached 1,248 cases in the first half of this year. This is a 21% increase compared to the same period last year. In particular, Dongtan District alone accounted for 351 contract cancellations so far this year, representing 28% of the total cancellations in major deregulated areas in the Seoul metropolitan region. In other words, about three out of ten 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 metropolitan housing market. This is due to the concentrated demand from high-income workers in the semiconductor industry. The close connection between the semiconductor business cycle and the housing market is so pronounced that new terms such as "Shuttle Zone" and "Semiconductor Zone" have emerged, reflecting expectations around the bonus season.

According to the Korea Real Estate Board on June 15, the annual housing price growth rates in Giheung District (5.99%) and Dongtan District (9.57%) have exceeded 5–9%, marking the highest levels in the Gyeonggi region. Compared to last year, the average actual transaction price per apartment in Guri and Dongtan District rose by 9.3% this year. This represents an increase of more than KRW 60 million per unit compared to the previous year. During the same period, Giheung District also saw prices rise from KRW 570.84 million to KRW 611.72 million, an increase of about KRW 40 million.

Ham Youngjin, Head of Woori Bank Real Estate Research Lab, analyzed, "Recently, as home prices and purchase demand have both increased in these areas, the number of sellers canceling contracts in hopes of additional profits has risen accordingly." He added, "Even with the burden of double compensation in mind, the strong expectation of further price increases is driving this behavior."

Furthermore, with demand for so-called "gap investment"—purchasing properties with tenants on long-term leases—also flowing in, both transaction volume and prices are showing noticeable increases. The market sees this as a classic "balloon effect." As entry barriers have risen in regulated areas such as Gangnam in Seoul, Gwacheon, and Bundang in Seongnam, demand is shifting to nearby areas with relatively fewer restrictions.

Under the current Housing Act, designation as a regulated or overheated speculation district takes into account whether the rate of housing price increases exceeds the inflation rate for a certain period, along with factors such as subscription competition rates and transaction volume. Recent statistics indicate that Guri, Dongtan District, and Giheung District have already met or are close to meeting some quantitative criteria for designation as regulated areas.

Lab head Ham stated, "In regulated areas, hurdles for market entry—including loans, taxes, and housing subscriptions—are raised. The rise caused by the balloon effect may lose momentum as regulations on buyers increase," advising, "Rather than focusing on short-term gains, it is advisable at this point to approach based on real residential value and the region's long-term competitiveness."

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