A few days ago, right before signing an apartment sale contract, the Oct. 15 real estate measures came out and the homeowner suddenly raised the price by 50 million won. In the end, the deal fell through. Even so, inquiries from investors who want to come see that home keep coming in not only from the Seoul metropolitan area but also from the provinces. (Employee at A certified real estate agency in Osan-dong, Hwaseong, Gyeonggi)
There are many inquiries from people who want to invest not only from the Seoul metropolitan area but also from the provinces. Even yesterday, customers wanting to come see homes lined up until 9–10 p.m., so there's hardly any time to rest these days. (Employee at B certified real estate agency in Cheonggye-dong, Hwaseong, Gyeonggi)
As the government designated all of Seoul and 12 cities and districts in southern Gyeonggi as regulated areas (adjusted areas and overheated speculation districts) and land transaction permission zones through the Oct. 15 real estate measures, a balloon effect is appearing in some areas that avoided the rules, such as Dongtan 2 New Town in Hwaseong, Gyeonggi.
With the ability to avoid restrictions such as reduced loan limits and limits on sales with jeonse in place (gap investing), demand for investment is concentrating in the Dongtan apartment market not only from the Seoul metropolitan area but also from the provinces.
On Oct. 17 from 1–2 p.m., employees at certified real estate agencies in Osan-dong, Hwaseong, Gyeonggi, said they had no time to rest due to the daily flood of buy and sell inquiries. In particular, purchase inquiries are pouring in for complexes around Dongtan Station, which is connected to the Great Train Express (GTX) A line.
C, an employee at a certified real estate agency in Osan-dong, said, The Dongtan Station Lotte Castle, considered the flagship apartment of Dongtan 2 New Town, is seeing asking prices jump steeply, with homeowners raising them by 100 million to 150 million won, and a high-floor 65-square-meter exclusive unit sold for 1.277 billion won last month, but even with asking prices now up to 1.45–1.5 billion won, many want to buy, so it will sell soon.
The person said, For 84 square meters exclusive as well, gap-investment listings with jeonse tenants are drawing a flood of investor inquiries, but homeowners are canceling or delaying contracts after the Oct. 15 real estate measures, and a high floor traded for 1.62 billion won last month, then changed hands at 1.65 billion won and 1.67 billion won, and now you need more than 1.7 billion won to buy on similar terms.
According to the real estate industry in the Dongtan area, investors are hurrying to buy Dongtan-area apartments amid sentiment that additional regulations could be implemented to curb the balloon effect going forward.
An employee at D certified real estate agency in Cheonggye-dong, Hwaseong, said, Unlike other areas where gap investing is completely banned due to the land-permission system, in Dongtan you can buy apartments with jeonse in place, so investors nationwide are all flocking to Dongtan.
However, even within the same Dongtan 2 New Town, Osan-dong and Cheonggye-dong near Dongtan Station are seeing active transactions and many investor inquiries, while outer areas such as Mok-dong, Jangji-dong, and Yeongcheon-dong are relatively quiet.
A Hwaseong-area real estate industry official said, In the Dongtan 2 New Town real estate market, during price upswings, the warmth that starts in Osan-dong and Cheonggye-dong near Dongtan Station spreads to Mok-dong, Jangji-dong, and Yeongcheon-dong, but right now only the markets in Osan-dong and Cheonggye-dong are in a full-blown rally.
The person added, Dongtan is recognized as a stable investment destination because there is Samsung Electronics and other large companies and, in terms of transportation, it is a hub for SRT, KTX, and GTX, so there is a strong perception that prices could continue to rise.