"Jumped 50 Million Won Overnight"... Gwangju Real Estate Surges on News of Samsung and SK hynix Arrival [Real Estate AtoZ]

Flpi Listings Surge Around Cheomdan 3 District
Mafi Listings Disappear, Premiums Even on Lower Floors
Some Sellers Hold Off Until Cluster Site Finalized

"Just last month, there was a flood of Ma-Pi (minus premium) listings, but now you have to factor in a 20 million won premium." (Real estate agent A near Gwangju Cheomdan 3 District)

Yonhap News Agency

With Samsung Electronics and SK hynix announcing plans to invest 800 trillion won to create a semiconductor cluster in South Jeolla Province and Gwangju, the local real estate market is experiencing a surge. As expectations grow that the region will transform into a semiconductor valley comparable to Dongtan in Gyeonggi Province, nearby complexes considered as likely sites for the cluster are already seeing sale rights being traded with significant premiums.

According to the real estate industry on June 30, the sale rights for "Hillstate Cheomdan Central" in Jangseong County, South Jeolla Province, have recently been traded with premiums in the tens of millions of won. The 84㎡ (the most popular standard size) sale right is being traded at 596.27 million won, which includes a 50 million won premium. Other sale rights are also being listed with premiums ranging from at least 10 million won to as much as 30 million won, with asking prices generally in the low 500 million won range, approaching 600 million won.

Sale rights for "Cheomdan Jeil Punggyeongchae Grand Foret," scheduled for occupancy in October, are also seeing a large number of Plus-Pi (plus premium) listings. The 84㎡ sale right is being offered with a maximum premium of 25 million won, bringing the asking price to 557.94 million won. For the 59㎡ size, even less popular lower-floor sale rights are being traded at 293 million won, including a 5 million won premium.

According to local real estate agencies, Ma-Pi (minus premium) sale rights that had been on the market until recently disappeared around the middle of this month. This shift came as media reported that SK hynix and Samsung Electronics would invest hundreds of trillions of won to establish semiconductor production bases in the Honam region. Cheomdan 3 District is being discussed as a strong candidate for the cluster due to its ability to secure a large industrial site and the presence of a national artificial intelligence (AI) data center, which increases the potential for R&D facility integration.

The owner of a nearby real estate agency said, "Just two weeks ago, Cheomdan Jeil Punggyeongchae Grand Foret had Ma-Pi listings in non-preferred buildings with discounts of 5 million to 10 million won, but now only Mu-Pi (zero premium) listings remain and most of the inventory has been consumed." He added, "Even for Mu-Pi sale rights, when a buyer expresses interest, sellers are holding off on transactions, saying they'll wait and see how things develop."

The situation is similar near the military airport relocation site in Gwangsan District, Gwangju, which is also being mentioned as a strong candidate for the cluster. This area is being considered because of its large size, favorable water supply, and transportation infrastructure. Following these reports, "Yeodaeum Apartment" in Gwangjuseonun 2 District, built by Youngmu Construction, is now trading with premiums from at least 5 million won up to 10 million won. While some Ma-Pi sale rights remain, most are limited to lower floors.

Some sellers are postponing sales until the site selection is finalized. A local real estate agency owner said, "There are some Mu-Pi listings, but sellers have told us they'll wait to see if the site is finalized at the recent national briefing before deciding whether to raise prices," adding, "We are also explaining to buyers that prices could rise again at any time."

However, experts note that since it will take some time for the cluster to actually materialize, it remains to be seen whether the positive development expectations will lead to a long-term rise in housing prices. Ham Youngjin, director of the Real Estate Research Lab at Woori Bank, said, "The current market trend is largely driven by anticipation of semiconductor investment, rather than real demand," adding, "In the medium to long term, land values will move first, and only after the industrial complex is established and corporate investment and infrastructure construction begin in earnest will the impact on the housing market become significant."

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