Korea Real Estate Board weekly price trend, fourth week of June

[Newsis]
[Newsis]

Apartment prices in areas near semiconductor industrial complexes — dubbed "ban-se-gwon," or semiconductor-adjacent zones — are surging across southern Gyeonggi Province, with Dongtan in Hwaseong and Suwon's Yeongtong district among the biggest gainers. Dongtan has posted a year-to-date price increase of 11.4 percent, the highest of any city, county or district in the country.

According to the Korea Real Estate Board's weekly apartment price trend report for the fourth week of June (based on June 22 data), Dongtan prices rose 1.65 percent week on week, maintaining strong momentum, though the pace eased from the 2.22 percent gain recorded the previous week. The year-to-date cumulative increase of 11.38 percent marks the first time any city, county or district nationwide has crossed the double-digit threshold this year.

Other areas in southern Gyeonggi Province close to semiconductor industrial complexes also showed strength.

Seongnam's Jungwon-gu rose 0.59 percent, Anyang's Dongan-gu gained 0.49 percent, and Seongnam's Sujeong-gu climbed 0.47 percent. Suwon's Yeongtong-gu advanced 0.41 percent, widening its gain by 0.07 percentage points from the prior week.

Beyond Dongtan, year-to-date cumulative gains are also elevated in Yongin's Suji (9.45 percent), Seongnam's Bundang (7.85 percent), Yongin's Giheung (6.21 percent) and Suwon's Yeongtong (6.15 percent). At this pace, more districts are expected to surpass the 10 percent cumulative mark in the second half of the year.

Gyeonggi Province's year-to-date cumulative gain stands at 2.67 percent, the third highest nationally after Seoul at 4.82 percent and Ulsan at 2.69 percent.

Nam Hyeok-woo, a real estate researcher at Woori Bank, told Yonhap News Agency that the slowdown in Dongtan reflected some buyers stepping back amid concerns over rapid price increases and potential regulation, while demand shifted toward newly built apartments at relatively lower prices in Suwon's Yeongtong-gu and Seongnam's Sujeong and Jungwon districts, pushing up gains in those areas.

The government is reviewing plans to designate Dongtan and other greater metropolitan areas that have seen sharp price increases as regulated zones and land transaction permit zones.

Officials are also laying the groundwork for a real estate tax overhaul, citing concerns that excess profits generated by AI and the semiconductor industry could flow into the property market.

Kim Yong-beom, the presidential chief of staff for policy at Cheong Wa Dae, wrote on Facebook on June 20 that "if the national wealth earned by semiconductors is absorbed as unearned income from real estate and the fruits of growth are concentrated in the hands of a few, this boom will not last long." He added that "rationally adjusting property holding taxes and capital gains taxes is a necessary and right direction."


jshan@heraldcorp.com