15 Trillion Won in Home Purchase Funds Flee 10·15 Measures, Flow to Neighboring Districts... Non-Regulated Gyeonggi Areas See 159% Surge in Home Purchases [Real Estate AtoZ]

Buying Demand Concentrated in Dongtan, Giheung, and Other Areas

After the government's 10·15 measures designated all of Seoul and parts of Gyeonggi Province as regulated areas, it has been found that home purchase funds have poured into neighboring districts that escaped these restrictions. While total home purchase funds in Seoul increased by 15%, non-regulated areas on the outskirts of Gyeonggi Province surged by nearly 160%.

On July 1, Assemblyman Lee Jongwook of the People Power Party analyzed housing acquisition funding plans submitted by the Ministry of Land, Infrastructure and Transport. The results showed that, during the seven months from November of last year—immediately after the announcement of the 10·15 measures—through May of this year, the total amount spent on home purchases in 18 adjacent regions of Gyeonggi Province reached 15.5882 trillion won. This represents an increase of 9.5613 trillion won compared to the same period a year earlier (6.0268 trillion won), an increase rate of 158.65%.

An apartment complex area near Dongtan Station in Hwaseong City, Gyeonggi Province, on the 30th of last month. Photo by Yonhap News

Through the 10·15 measures announced last October, the government designated all of Seoul and 12 areas in Gyeonggi Province as regulated areas, including adjustment target areas, speculative overheating districts, and land transaction permission zones. Once designated as a regulated area such as a land transaction permission zone, borrowing becomes more difficult, and there are requirements for actual residence, making gap investment—buying a house with a tenant under a lease agreement—impossible. As a result, both end-users forced into housing insecurity and gap investors flocked to these areas, amplifying the so-called "balloon effect."

The 18 regions surveyed include areas adjacent to the regulated zones: Guri, Namyangju, Gwangju, Yongin (Cheoin and Giheung), Suwon Gwonseon, Hwaseong (Dongtan and Byeongjeom), Gunpo, Anyang Manan, Siheung, Bucheon (Sosa, Wonmi, Ojeong), Gimpo, Goyang Deokyang, Yangju, and Uijeongbu. Dongtan District in Hwaseong City, while not directly bordering a regulated area, is close in proximity and has been significantly affected by regulations, so it was included in this analysis.

In particular, funds were heavily concentrated in three areas that were newly announced as regulated areas the previous day. Home purchase funds in Guri City amounted to 1.4573 trillion won, up 329.53% from a year earlier. Dongtan District in Hwaseong City recorded 4.3306 trillion won, a 214.96% increase, while Giheung District in Yongin City reached 1.9801 trillion won, a 191.82% surge.

Assemblyman Lee pointed out that, as the phenomenon of demand being pushed to the outskirts shows, suppression-based regulations have their limitations. He stated, "Measures are needed to expand supply that end-users in Seoul and the greater metropolitan area can feel, as well as policies to stabilize the rental and monthly lease markets."

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