Following the designation of land transaction permission zones and additional regulatory areas, the trends in housing prices across major overheated regions in Gyeonggi Province are showing mixed results. While prices in Hwaseong's Dongtan and Guri have slowed, those in Yongin's Giheung and Gwangmyeong have seen an increase.
According to the Korea Real Estate Agency's weekly apartment price trends, as of the second week of July, apartment prices in Hwaseong's Dongtan district rose by 0.73% compared to the previous week, a decrease from the prior week's increase of 1.29%. Guri also experienced a slowdown, with prices rising 0.31% during the same period, down from 0.64%.
In contrast, Giheung in Yongin showed a different trend, with apartment prices increasing by 0.59%, slightly higher than the overall increase of 0.56%. Gwangmyeong also saw a rise, with prices climbing from 0.44% to 0.59%.
Last month, the government designated Hwaseong's Dongtan, Yongin's Giheung, and Guri as speculative overheating zones and adjustment target areas. Gyeonggi Province also included these regions in its land transaction permission zones, reflecting a strong post-regulation approach to areas experiencing rapid price increases.
However, the market response has not been uniform. The slowdown in Dongtan is attributed to a combination of short-term price fatigue and the burden of loan and transaction regulations. Guri's price increase has also diminished as the initial excitement of being near Seoul has waned under regulatory pressures.
Giheung's prices remain supported by expectations surrounding the semiconductor belt and transportation improvements. The anticipation of developments like the Yongin Platform City, GTX, and semiconductor clusters suggests that demand has not completely diminished despite the regulations.
Gwangmyeong continues to attract interest due to its potential as an alternative to Seoul and ongoing redevelopment projects. As housing prices in Seoul's southwestern region continue to rise, Gwangmyeong is seen as a location benefiting from both accessibility to Seoul and redevelopment opportunities.
A real estate agent noted, “Even within the same land transaction permission and regulatory areas, the market's reception can vary. Areas with high short-term investment demand may see a drop in transactions immediately after regulations are imposed, but regions with genuine residential demand and development expectations tend to maintain their asking prices.”
However, some experts believe that the true impact of the regulations will depend on future transaction volumes. They suggest that the effects of regulations may not be immediately reflected in prices but could manifest later through decreased transaction volumes, inventory lock-up, and adjustments in asking prices.
A real estate industry insider stated, “While short-term investment demand decreases with regulations, sellers in areas with strong development prospects are less likely to lower their asking prices. Although Dongtan, Giheung, and Guri are grouped as regulatory areas in Gyeonggi, the underlying demand and factors driving prices differ.”
He added, “Even if the rate of price increase slows, if transactions halt while asking prices remain stable, it is difficult to consider the market stable. Conversely, if the rate of increase rises while transactions decline, it is likely that the effects of the regulations will be reflected later.”
* This article has been translated by AI.
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