The number of unsold apartments in Pyeongtaek and Icheon, Gyeonggi Province—areas long notorious for an "oversupply"—has fallen by nearly half this year. Analysts say the semiconductor boom combined with a "windfall" from the 600 million won mortgage cap regulation.
According to the Land Ministry's Statistics Nuri on the 16th, the number of unsold apartments in Pyeongtaek, Gyeonggi Province, was 6,438 households in January this year. However, it plunged to 3,482 households 7th. Over a little more than half a year, 2,956 households (46%) escaped unsold status. As a result, Pyeongtaek City was removed from the unsold housing management zones last month.
Icheon, Gyeonggi Province, also saw a sharp decline in unsold units this year. The number of unsold apartments, which was 1,873 households in January 2024, fell to 1,190 households in July, down 683 (36%).
Pyeongtaek and Icheon are representative "semiconductor cities." In Pyeongtaek, Samsung Electronics originally planned to build a total of six semiconductor production lines (P1–P6) by 2030. But last September, it delayed the construction schedule for the P4 and P5 plants. For the operating P2 and P3 plants, it even implemented a "cold shutdown," cutting power to some foundry production line equipment. Then, 7th, the mood began to turn around after it officially announced it would resume investment in the Pyeongtaek complex on increased semiconductor orders.
Icheon, the "city of SK hynix," saw expectations for home price gains rise after the government announced a plan last year to create a "semiconductor mega cluster" centered on southern Gyeonggi. But concerns about unsold units grew as supply outpaced demand even before the industrial complex gained traction. Recently, with SK hynix's second-quarter revenue (2.2232 trillion won) up 35% and its share price climbing for 10 consecutive trading days since September, investment demand for Icheon apartments is also reviving.
The "semiconductor boom" also affected the decline in unsold units in Yongin, Gyeonggi Province. The number of unsold units in Yongin was 1,001 households in January 2024, a year and a half ago, and fell by more than half to 459 households 7th.
The market also notes that the 6.27 loan regulation acted as a positive for the decline in unsold units in "semiconductor cities." Contracts surged at complexes that had issued recruitment notices before the loan regulation announcement and had remained unsold. These complexes are not subject to the 600 million won cap on home mortgage loans, so they are free from issues such as balance loans at move-in.
Cho Young-gwang, a researcher at Daewoo E&C and author of "The Apex of Wealth," said, "As you can see in recent share prices, there are signs of a rebound in the semiconductor cycle, and news of SK hynix's performance bonuses is a factor improving real purchasing conditions around Icheon," adding, "Home seekers without a property are taking out loans of up to 600 million won to buy future school districts in new towns, and semiconductor cities fall into this category."
Nam Hyuk-u, a real estate researcher at Woori Bank's WM Sales Strategy Department, said, "The decline in unsold inventory in places like Pyeongtaek and Icheon was partly driven by expectations for the creation of semiconductor industrial complexes and a recovery in the industrial cycle going forward," adding, "However, it is hard to see the current downward trend as an immediate structural recovery of the real estate markets in Icheon and Pyeongtaek. We need to watch the actual trajectory of the semiconductor cycle, the progress of corporations' investment plans, and above all how the supply and demand of dwellings in the region evolves."