Dongtan and Yeongtong Slow Down as Gwonseon and Byeongjeom Surge... Balloon Effect Spreads in the Semiconductor Belt [Real Estate AtoZ]

Gyeonggi Home Prices Up 0.21% Week-on-Week
Growth Slows as Dongtan and Yeongtong Cool Off
Non-Regulated Areas Like Gwonseon and Byeongjeom Show Upward Trend

As the government enters the second week of its triple regulation policy—designating Hwaseong Dongtan, Giheung-gu in Yongin, and Guri-si as both regulated areas, speculative overheating districts, and land transaction permit zones—the balloon effect is spreading to non-regulated areas such as Byeongjeom in Hwaseong and Gwonseon-gu in Suwon. Analysts attribute this to a temporary adjustment in the real estate market of key residential areas in the semiconductor belt, triggered by these strong regulations, which in turn is driving buying demand to nearby regions.

Apartment complexes around Dongtan Station area, Hwaseong City, Gyeonggi Province. Photo by Yonhap News Agency

According to apartment price trend data for the second week of this month (as of the 13th) released by the Korea Real Estate Board on July 16, apartment sales prices in Gyeonggi Province rose by 0.21% compared to the previous week. Previously, in the fourth week of last month, the weekly growth rate had decreased slightly to 0.19%, but after shifting back to an upward trend for the first time in three weeks last week, the pace of increase has once again moderated slightly.

This is largely due to a slowdown in housing prices in major residential areas within the semiconductor belt that have been designated as regulated, such as Dongtan-gu in Hwaseong and Yeongtong-gu in Suwon, where housing prices have recently surged. For instance, in Dongtan, Hwaseong, the apartment sales price increased by 2.22% (as of the second week of last month, the 15th) compared to the previous week's 1.98%, but it has continued to decline for four consecutive weeks since then. Last week, the increase stood at just 0.73%, sharply slowing to below the 1% range. Dongtan-gu is considered a so-called “commute premium district,” located close to shuttle bus routes connecting Samsung Electronics' Hwaseong·Giheung Campus and Pyeongtaek Campus, and has been a driving force behind the recent rise in home prices in southern Gyeonggi Province.

Similarly, Yeongtong-gu in Suwon saw its home price increase reach a peak of 1.19% in the first week of July (as of the 6th), but dropped to 0.64% last week, indicating a downward trend. Yeongtong-gu is home to Samsung Electronics' headquarters and its research and development (R&D) hub, Samsung Digital City.

In contrast, there are signs of a sharper increase in nearby non-regulated areas adjacent to the semiconductor belt. In Gwonseon-gu—the only district in Suwon that has not been designated as a regulated area—home prices surged 0.32% compared to the previous week. This marks the fifth consecutive weekly rise since the second week of June (as of the 15th), when it saw a 0.11% increase. Likewise, Byeongjeom-gu in Hwaseong, which is adjacent to Dongtan-gu, rose 0.32% from the previous week, continuing its upward trend for four weeks in a row since the third week of June (as of the 22nd), when it posted a 0.14% increase.

In Yongin, both regulated and non-regulated districts continue to show strong upward trends. Last week, Suji-gu and Giheung-gu recorded increases of 0.44% and 0.59%, respectively, widening their gains from the previous week. In particular, Giheung-gu, which was designated as a regulated area in the first week of July, has seen its housing prices rise for four consecutive weeks since the third week of June (as of the 22nd). Analysts point out that this area was less affected by the regulatory designation, since its rate of increase was still lower compared to Dongtan-gu and Yeongtong-gu, which recently recorded over 1% increases.

Experts forecast that as core residential areas in the semiconductor belt enter a phase of stabilization, the balloon effect—causing price surges in nearby non-regulated areas—will likely persist for the time being. Youngsun Kwon, an analyst at Shinhan Bank's Real Estate Investment Advisory Center, stated, "Due to market shocks from regulatory designations, residential areas within the semiconductor belt that had seen steep home price increases, such as Dongtan-gu and Yeongtong-gu, are likely to enter a temporary adjustment phase." He added, "However, end-user demand in these areas remains strong, so it is unlikely that a downward trend will continue in the long term."

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