It has been found that a large number of apartment sales contracts have been canceled in Dongtan-gu, Hwaseong, Gyeonggi Province, where demand from high-income semiconductor industry workers—including those at Samsung Electronics and SK hynix—is concentrated.

According to Woori Bank Real Estate Research Lab on June 24, the number of canceled sales contracts in Guri, Namyangju, Gwonseon-gu in Suwon, Manan-gu in Anyang, Giheung-gu in Yongin, and Dongtan-gu in Hwaseong during the first half of this year was 1,248 cases. This is an increase of 21% compared to the same period last year. In particular, Dongtan-gu alone accounted for 351 contract cancellations just this year, representing 28% of all contract cancellations in major non-regulated areas in the Seoul metropolitan region. In other words, roughly 3 out of every 10 canceled contracts in these areas were in Dongtan-gu.

A view of Dongtan Yeoksibeom The Sharp Central City Apartment in Hwaseong, Gyeonggi Province on the 18th. Photo by Sungah Sim

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Recently, Giheung-gu and Dongtan-gu have emerged as key areas in the greater Seoul real estate market, driven by concentrated demand from high-income workers in the semiconductor industry. In anticipation of the annual bonus season, new buzzwords like "Syeosekwon" and "Bansekwon"—slang terms relating to convenient subway and semiconductor plant access—have emerged, underscoring how closely the semiconductor sector and the housing market are now linked.

According to Korea Real Estate Board on June 15, the year-to-date increase in housing prices was 5.99% in Giheung-gu and 9.57% in Dongtan-gu, the highest rates in Gyeonggi Province. Compared to last year, average apartment transaction prices in Guri and Dongtan-gu have each risen by 9.3% per unit. This means the average price per apartment has increased by over 60 million won from a year ago. During the same period, the average transaction price in Giheung-gu rose from 570.84 million won to 611.72 million won, an increase of about 40 million won.

Ham Youngjin, head of the Woori Bank Real Estate Research Lab, analyzed, "As housing prices and transaction demand have surged in these areas recently, the number of sellers canceling contracts in anticipation of further profits has also risen," adding, "Even considering the burden of double compensation, expectations for additional price increases are strong."

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Moreover, so-called "gap investment"—where buyers purchase properties with tenants in place—has increased, fueling a noticeable rise in both transactions and prices. The market views this as a classic "balloon effect." As entry barriers to regulated areas like Gangnam in Seoul, Gwacheon, and Bundang in Seongnam have risen, demand has shifted to relatively less regulated adjacent regions.

Under current housing law, areas are designated as "areas subject to adjustment" or "overheated speculation zones" if certain criteria are met, such as sustained housing price increases above inflation, high application competition, or increased transaction volumes. Recent statistics show that Guri, Dongtan-gu, and Giheung-gu already satisfy or are close to meeting several quantitative criteria for regulated designation.

Ham further advised, "In regulated areas, the barriers to entry—loans, taxes, and applications—become much higher. Price increases driven by the balloon effect may lose momentum as regulations tighten on buyers. Therefore, it is now more appropriate to focus on the value of actual residence and the long-term competitiveness of the region than on short-term gains."