Balloon Effect in Unregulated Areas Following Dongtan Restrictions... 'Grove at Hyangnam Station Switzen' Launches Sales

Transaction Volume in Dongtan Drops 68.8% in July
Byeongjeom and Osan See Increases after New Regulations


Hyangnam Offers Strong Infrastructure and Price Competitiveness
84m² Units Priced in Mid-500 Million Won Range

Grove Switzen Main Perspective View at Hyangnam Station
[Photo by KCC Construction]

Following Dongtan’s designation as a regulated area, apartment transaction volumes in Dongtan sharply dropped by 68.8% compared to the previous month, totaling 750 transactions. This “balloon effect,” with demand shifting to nearby unregulated areas, is much greater than the overall decrease in Gyeonggi Province, where transaction volumes fell by 13.0% over the same period.

In contrast, adjoining unregulated areas such as Byeongjeom District in Hwaseong City and Osan City have benefited from the balloon effect. In July, Byeongjeom District saw 535 apartment transactions, a 37.9% increase from the previous month. Osan City also recorded 460 transactions, up 39.4%. Analysts believe end-users avoided the high property prices and strict mortgage regulations in Dongtan by moving to these neighboring regions.

As transaction volumes increased, sale prices also showed an upward trend. In August, Byeongjeom District’s apartment sales price index rose to 103.15 from 101.31 the previous month. At 'Byeongjeom Station IPARK Castle', the transaction price for 84m² units hit a record 950 million won in September, 105m² units reached 1.04 billion won, while 75m² units were sold for 925 million won—all setting new highs.

A similar trend appeared in Osan. At Seodongtan Station The Sharp Park City in Oesammi-dong, a 101m² unit changed hands for 829 million won in August, surpassing the previous record of 800 million won set in July. At Saema Station Truewell The First in Saegyo-dong, an 84m² unit was traded for 515 million won in September, exceeding the previous high of 500 million won in August.

The divergence in transaction trends is attributed to differences in funding conditions by region. The Ministry of Land, Infrastructure and Transport designated Dongtan District as a speculative overheating zone and a price regulation area from July 1. As a result, the loan-to-value (LTV) ratio applied to typical non-homeowners’ mortgage loans was lowered from 70% to 40% as a general rule, making it more difficult for buyers to secure funds for home purchases.

A real estate industry insider commented, “For genuine end-users burdened by Dongtan’s property prices and tough funding conditions, nearby unregulated areas can be an alternative. Among these, areas with convenient commuting options and established living infrastructure are likely to draw the most interest.”

Meanwhile, in the Hyangnam area—an unregulated district of Hwaseong City—'Grove at Hyangnam Station Switzen' will officially launch sales on Thursday, October 8 by opening its model home. Constructed by KCC Construction, the development will be located in Hagil-ri, Manse-gu, Hwaseong, Gyeonggi Province, with 7 buildings, each ranging from 2 basement floors to 29 floors above ground, offering 933 units in total across dedicated sizes from 71m² to 147m².

There is also anticipation for better access to Seoul. At Hyangnam Station on the Seohae Line, the extension of the Sinansan Line is underway. Once completed, this project will enable direct commuting from Hyangnam Station to Yeouido without transfers, greatly improving access to Seoul’s major business districts and expanding residents’ living areas.

Another advantage is easy access to schools, parks, and commercial facilities. Hagil Middle School and Hagil High School are nearby, and Hawon Elementary and Seobong Elementary are within walking distance. Notably, residents can walk from the complex to Hawon Elementary via Punggyeong Park without crossing a crosswalk. The central commercial zone is also adjacent, making access to various daily conveniences easier.

As more homebuyers seek higher-quality living spaces, the concentration of demand on complexes with comprehensive infrastructure is likely to intensify further.

Meanwhile, subscription for 'Grove at Hyangnam Station Switzen' will begin on October 12 with special supply units, followed by first-tier subscriptions on October 13 and second-tier on October 14. The model home is located in Hagil-ri, Manse-gu, Hwaseong, Gyeonggi Province.

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