Apartment complexes in Dongtan-gu, Hwaseong, Gyeonggi Province. The Ministry of Land, Infrastructure and Transport designated Dongtan-gu in Hwaseong, Giheung-gu in Yongin and Guri as regulated zones — both as adjustment target areas and speculative overheating districts — effective July 1. [Yonhap]
Apartment complexes in Dongtan-gu, Hwaseong, Gyeonggi Province. The Ministry of Land, Infrastructure and Transport designated Dongtan-gu in Hwaseong, Giheung-gu in Yongin and Guri as regulated zones — both as adjustment target areas and speculative overheating districts — effective July 1. [Yonhap]

More than 5,000 housing transactions were recorded in Dongtan-gu, Hwaseong — the area that saw the steepest home price gains nationwide in the first half of this year — making it the busiest residential market in the country and surpassing even Nowon-gu, the most active district in Seoul.

An analysis of funding disclosure forms obtained through People Power Party lawmaker Lee Jong-wook's office shows that 5,042 such forms were submitted for transactions in Dongtan-gu, Hwaseong from January through June (based on contract date, covering deals worth 600 million won ($409,000) or more). The combined market value of homes purchased by those buyers reached 4.53 trillion won.

Both the transaction count and total value exceeded those of Nowon-gu — Seoul's most active district over the same period — which recorded 4,920 transactions worth 3.08 trillion won. Among Seoul's 25 autonomous districts, only Songpa-gu (4,156 transactions, 5.75 trillion won) and Gangnam-gu (2,267 transactions, 5.03 trillion won) surpassed Dongtan in total transaction value. Because Dongtan was not a regulated zone in the first half of the year, funding disclosure forms were required only for transactions of 600 million won or more, meaning the actual total transaction volume and value are likely even higher.

Buyers' own funds accounted for a total of 2.48 trillion won — more than 430 billion won above the 2.05 trillion won raised through borrowing, including loans from financial institutions. This means funds sourced personally — such as savings, proceeds from selling stocks and bonds, gifts and inheritances, and proceeds from selling real estate — exceeded amounts borrowed from external sources such as company loans.

In particular, 3,414 cases — about 68 percent of the total — involved proceeds from selling real estate as a source of personal funds. Nearly 7 in 10 buyers purchased their Dongtan home by trading up from an existing property. The total proceeds from real estate disposals by these buyers reached 1.48 trillion won. Beyond that, Dongtan buyers drew on 604.5 billion won in savings, 239.4 billion won from stock and bond sales, 129.2 billion won from gifts and inheritances, and 26.3 billion won from cash and other sources.

On the borrowing side, funds came from 1.47 trillion won in financial institution loans, 436.9 billion won in rental deposit funds, 133.3 billion won in other borrowings, and 12.8 billion won in company support funds and private debt, in that order. Because employer-backed housing stability loans from Samsung Electronics and other major companies had not yet launched in the first half of the year, company support funds and private debt accounted for less than 1 percent of total borrowings.

Monthly transaction counts were: 751 in January, 551 in February, 651 in March, 682 in April, 980 in May and 1,427 in June. Industry observers attribute the June surge — two to three times the volume seen at the start of the year — to growing expectations surrounding the opening of the GTX-A rail line and Dongtan's position at the heart of the semiconductor belt.

The sharp rise in transactions has also pushed up home prices. According to KB Real Estate's July national housing price trend report, apartment prices in Dongtan-gu, Hwaseong surged 6.25 percent this month, breaking the previous record of 4.16 percent set last month.

Ham Young-jin, head of the real estate research lab at Woori Bank, said Dongtan's second-quarter transaction volume more than doubled year-on-year — what he called a "quantum jump." He added that while transaction activity may slow briefly now that the area has been designated a regulated zone in July, demand for home purchases is expected to remain solid as employer-backed housing stability loans at rates around 1 percent — far below prevailing market rates — begin to roll out in earnest.

Dongtan was not subject to regulation in the first half of the year, so funding disclosure forms were required only for transactions involving homes priced at 600 million won or more. Dongtan-gu in Hwaseong, along with Giheung-gu in Yongin and Guri, was designated a regulated zone — covering both adjustment target area and speculative overheating district status — effective July 1, and all housing transactions in those areas now require submission of such documents.


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