"We Won’t Sell Below the Record High"—Dongtan’s Housing Price Surge Spreads to Byeongjeom and Gwonseon

[Financial News] "Whenever an actual transaction is recorded, it is at a record-high price, so homeowners seem unwilling to sell below that level."
On the 8th, real estate agent A in Dongtan, Hwaseong City, Gyeonggi Province, described the recent market mood this way. Real estate agent B nearby said, "When listings come onto the market, transactions tend to close relatively quickly. Homeowners keep raising their asking prices, and sometimes they raise them even further when a buyer shows interest in purchasing. That is because the properties still sell."
Until early this year, transactions were particularly active in major complexes in Dongtan 2 New Town near Dongtan Station. Recently, however, buying interest appears to be spreading to Dongtan 1 New Town. Real estate agent C near Dongtan 1 New Town explained, "Recently, inquiries from buyers have remained steady, especially for properties priced below 1.2 billion won in Dongtan 1 New Town."
The same mood is also being detected in the new-home sales market. Industry sources say the sale price of an 84-square-meter unit at Akmer Dongtan, scheduled to be offered in Dongtan 1 New Town this month, could be set at around 1.7 billion won. Price momentum that began in Dongtan is spreading across southern Gyeonggi Province.
As record-high transactions continue, buying interest is also spreading to nearby Byeongjeom and Suwon, where the higher prices in Dongtan are creating a burden. An 84-square-meter unit at Byeongjeom Station IPARK Castle, regarded as the flagship complex in Byeongjeom District, Hwaseong City, traded for 938 million won on the 29th of last month. That surpassed the previous record of 925 million won just 18 days later. Expectations for the extension of Great Train eXpress Line C (GTX-C) to Byeongjeom Station, along with plans to develop the Byeongjeom Station Complex Transfer Center, appear to be drawing greater interest from end users who find Dongtan’s price increases burdensome.
The pace of price growth is also steep. According to the Korea Real Estate Board (KREB), apartment sale prices in Byeongjeom District rose 1.31% in July from the previous month, exceeding a 1% increase. Apartment prices in Byeongjeom District had posted relatively moderate gains of 0.26% in February, 0.29% in March, 0.38% in April and 0.36% in May before jumping to 0.90% in June.
Suwon’s Gwonseon District is showing a similar pattern. Apartment sale prices in Gwonseon District rose 0.48% in March, followed by increases of 0.59% in April, 0.85% in May, 1.00% in June and 1.26% in July. The monthly rate of increase has accelerated for four consecutive months since March.
Experts say Dongtan’s housing price gains need to be viewed differently from those in typical outlying areas of Gyeonggi Province. The area offers proximity to jobs and homes, while the Metropolitan Area Rapid Transit Line A (GTX-A) network has significantly improved access to Seoul. Ko Jun-seok, a professor at the Sangnam Institute of Management, Yonsei University, said, "Dongtan offers proximity to jobs and homes, and once GTX-A is extended to Samseong Station, it could become part of the Gangnam living area within 30 minutes. Given these special characteristics, it can effectively be viewed as similar to Seoul’s outer living areas."
However, Ko said, "If price levels like those in Dongtan are applied directly to other outlying areas, new-home sales may prove difficult. Ultimately, transportation conditions and access to Seoul are the key factors determining regional price differences."
[email protected] Choi A-young Reporter