Small units closing price gap with larger ones; mid-to-large listings also seeing prices firm up
Upgrade inquiries rise as sellers raise asking prices
Dongtan apartment prices up 0.54% this week, widening gains
Experts see solid demand keeping prices on an upward trajectory
Since a couple of days ago, Samsung Electronics employees have been trickling in to look at homes. The asking prices for smaller units — popular with newlyweds and single-person households — have nearly caught up with those for mid-to-large units.
— Head of real estate agency A in Osan-dong, Dongtan-gu, Hwaseong, Gyeonggi Province
Buying inquiries have picked up again in Hwaseong's Dongtan district — which had gone quiet since being designated a regulated zone — as Samsung Electronics prepares to launch a housing loan program Tuesday offering up to 500 million won ($362,000) at an annual interest rate of 1.5 percent for employees who do not own a home. Even entry-level workers with little savings are now looking to get on the property ladder using the in-house loan, pushing up prices for mid-to-lower-priced apartments in the 1 billion won range.
When a reporter visited Mokdong in Dongtan-gu on Thursday, buying inquiries from Samsung Electronics and SK hynix employees were already flowing in. Mokdong is a well-known "shuttle-bus zone" — an area served by company shuttle routes rather than the subway — and still has a concentration of apartments priced around 1 billion won, making it a popular neighborhood for newlyweds.
"With the Samsung Electronics in-house loan rollout just around the corner, we're seeing more young buyers who are actively ready to purchase," said the head of real estate agency B in Mokdong, Dongtan-gu. "Even very junior employees who have not been with the company long are coming in to look at homes priced under 1 billion won."
Starting Tuesday, Samsung Electronics will offer a housing stability support program for employees without homes, lending up to 500 million won at an annual rate of 1.5 percent for home purchases. Eligible properties must be priced at 2.5 billion won or less, and in the Greater Seoul area and major cities, only homes with an exclusive use area of 85 square meters or less qualify.
Because in-house loans are funds lent directly by the company to its employees, they are not subject to the debt service ratio (DSR) regulations that apply to bank mortgage loans. On top of the in-house loan, employees can still take out additional bank loans to the extent permitted by DSR and loan-to-value ratio (LTV) limits.
Samsung Display had already introduced an in-house loan benefit with the same ceiling starting July 10. Agents on the ground say buying momentum, which had been building gradually, accelerated further ahead of Samsung Electronics' rollout.
"Employees from other affiliates — even those with just a few years on the job — are already coming in to look at apartments under 1 billion won," the head of agency B said. "Every complex keeps setting new record transaction prices."
Record-high transactions have indeed been appearing in Mokdong. According to people familiar with the local market, a 74-square-meter unit at Hillstate Dongtan recently changed hands for 1.04 billion won, while an 84-square-meter unit at Dongwon Royal Duke 2nd sold for 845 million won. Official transaction filings are expected shortly.
First-time buying activity among younger buyers is also brisk. According to the Court Registry Information Plaza, 71 buyers between the ages of 19 and 29 purchased real estate in Dongtan-gu for the first time in their lives between Aug. 1 and Wednesday — a period of less than a month. That figure is roughly a quarter of the 292 buyers in their 30s, the primary demand group, over the same period.
Young couples seeking buying consultations were also noticeably more visible in the transit-oriented area around Dongtan Station — often called "the Gangnam of Dongtan." The Yeoul-dong neighborhood near the station is considered the ultimate destination for those looking to trade up within Dongtan itself, with apartments priced in the high 1 billion to low 2 billion won range, making it the most affluent part of the district.
"When Dongtan-gu was designated a land transaction permit zone in July, transactions slowed, but recently we are again seeing a steady stream of people trying to trade up to better properties and first-time buyers making their move," said an agent at real estate agency C in Yeoul-dong. "Even customers who had been quietly watching and waiting in anticipation of the in-house loan are now joining the push to buy."
As buying inquiries have kept coming, sellers have begun raising their asking prices one by one. "With the in-house loan application period approaching and the weather cooling down, newlyweds and young parents are starting to come look at homes," said the head of real estate agency D. "There have been cases where sellers who had listed their properties pulled back and raised their asking prices, expecting demand to grow further."
The apartment price index for Dongtan-gu is also widening its gains. On Monday, the index stood at 102.18 (with July 6, 2026 as the base of 100), up more than 2 percent over the past two months. After recording a weekly gain of 0.25 percent on July 20, the pace slowed to 0.12 percent on Aug. 17, but this week it rebounded to 0.54 percent — more than four times the previous week's increase.
"Demand from people who want to put down roots here is consistent, so apartment prices keep rising," the head of agency D said. "We are also seeing an unusual situation where distressed multi-home sellers and record-high transactions are appearing at the same time, due to the regulatory impact."
Experts expect Dongtan apartment prices to keep climbing for now. "Workers at nearby companies will want to buy a home the moment they have a lump sum available," said Seo Jin-hyung, a professor in the real estate law department at Kwangwoon University. "Because this is an area with solid demand, housing prices are likely to continue trending upward for the time being." He added that in an environment of tight supply, demand is bound to concentrate in established neighborhoods like Dongtan that already have the infrastructure in place.
shy@heraldcorp.com
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