Will Bundang, Suji and Yeongtong, along with Dongtan and Giheung, cement southern Gyeonggi Province's 'Big Five'?

[Financial News] Home prices in southern Gyeonggi Province, a residential area supporting the semiconductor belt, continue to show strength. Expectations for a recovery in the semiconductor industry, combined with end-user demand from Seoul and other parts of the capital region, are pushing Dongtan and Giheung beyond their role as alternatives to established prime areas such as Bundang, Suji and Yeongtong. They are emerging as new core residential hubs. Even after the new regulations took effect, listings in Dongtan and Giheung declined and prices kept rising.■Dongtan and Giheung keep rising despite regulationsAccording to the Korea Real Estate Board (KREB) on the 20th, apartment sale prices in Dongtan District rose 0.73% in the second week of July, based on data as of the 13th. That was slower than the previous week's 1.29% gain. Yeongtong-gu in Suwon also slowed to 0.64% from 1.19%. By contrast, Giheung-gu widened its increase to 0.59% from 0.56%. Bundang District, Seongnam, rose 0.42%, and Suji District, Yongin, gained 0.44%. Bundang cooled from the previous week, but Suji accelerated from 0.39%.
Dongtan, Giheung and Guri, which were among the areas newly designated for additional regulation, were classified as Speculative Overheating Districts and Areas Subject to Adjustment on the 1st of this month, and were also placed in land transaction permit zones on the 5th. In Giheung and Dongtan, Asil data showed that sale listings fell 8.2%, from 4,573 to 4,200, and 5.4%, from 3,964 to 3,753, respectively, compared with the 4th, just before the permit rules took effect.
Listings also declined in the long-favored areas of Bundang, Suji and Yeongtong. Sale listings in Suji fell 5.2% over the same period, while Yeongtong dropped 1.9%. Bundang was down only 0.1%.■Solid end-user demand keeps asking prices firmJust before the permit rules took effect, some major complexes in Dongtan and Giheung also saw record-high transactions. According to the Ministry of Land, Infrastructure and Transport's Actual Transaction Price Disclosure System, a 73-square-meter unit at Dongtan Station Bando U Bora I-Park 7.0 changed hands for 1.45 billion won on the 4th, one day before the rules were implemented, setting a new high. A nearby brokerage official said, "After the permit rules were announced, buyers waited to see whether prices would fall further, so transactions slowed," but added, "There are not many move-in-ready listings, so asking prices for units with good conditions, such as park views, are not coming down easily."
A 84-square-meter unit at Giheung Station Central Prugio also hit a new record of 1.067 billion won on the same day. A broker near the complex said, "After the permit rules, investment demand has faded and transactions are not as active as before, but inquiries from end users, especially newlyweds and workers in the semiconductor industry, remain steady." Move-in-ready 35-pyeong units are listed in the 1.05 billion won to 1.1 billion won range. Most of the lower-priced listings appear to be properties with existing jeonse leases.
Meanwhile, the rise in home prices in southern Gyeonggi Province has been limited to a few preferred areas. Pyeongtaek continued to fall, down 0.01%, while Icheon widened its decline to 0.16%. Industry watchers expect the market to remain differentiated for now, with buying concentrated in areas that combine semiconductor-related demand, transportation networks and living infrastructure.
Nam Hyuk-woo of Woori Bank Real Estate Research Institute analyzed, "In Dongtan and Yeongtong, the pace of price increases has slowed because of the short-term burden from recent gains and the designation as regulated areas. But demand is shifting to Giheung, where relatively cheaper apartments are concentrated, and that is widening the pace of increase." He added, "As the strength originating from Dongtan continues, sellers in areas where prices have risen are trying to move up to preferred locations such as Bundang and Suji, which is helping demand flow in steadily."
He also said, "End users who prioritize location are looking for relatively cheaper complexes even within regulated areas, so the balloon effect, in which demand shifts massively to non-regulated areas, remains limited."
[email protected] Jang In-seo Reporter