Expectations for hefty performance bonuses at so-called "Samjeon-nix," including Samsung Electronics and SK hynix, are stoking the real estate market in southern Gyeonggi. In Dongtan, regarded as the flagship residential area for the Samsung Electronics Giheung-Hwaseong campus and the SK hynix Yongin semiconductor cluster, prices for 84-square-meter units—known as the standard national layout—have topped 2 billion won. Hopes for a semiconductor rebound are spreading to nearby areas such as Yeongtong in Suwon and Suji in Yongin.
According to the Ministry of Land, Infrastructure and Transport's actual transaction disclosure system on the 29th, an 84-square-meter unit at 'Dongtan Station Lotte Castle' in Yeoul-dong, Dongtan-gu, Hwaseong, Gyeonggi Province, changed hands for 2.08 billion won on the 7th. It was a record price. The same size unit rose 140 million won in just two weeks from 1.94 billion won on Apr. 23. Compared with early-year transaction prices, it has jumped by nearly 500 million won.
Dongtan Station Lotte Castle is regarded as the leading apartment complex in the Dongtan area. Only one listing is currently on the market, with an asking price around 2.25 billion won. An official at a real estate agency in Dongtan-gu said, "From late last year to January, we had many purchase inquiries from SK hynix employees, and recently inquiries from Samsung Electronics employees have increased," adding, "Because there is demand willing to buy even at higher prices, not only Lotte Castle but also nearby complexes have risen by 200 million to 300 million won since the start of the year."
Record-price transactions are continuing at other complexes around Dongtan Station. An 84-square-meter unit at 'Dongtan Station Siheom Hanwha Dream & Green Prestige' in Cheonggye-dong, Dongtan-gu, which transacted for 1.289 billion won in January, sold for 1.58 billion won on the 14th. An 84-square-meter unit at 'Dongtan Station Siheom The Sharp Central City' in the same neighborhood also changed hands for 1.59 billion won last month.
Interest in Dongtan apartments is growing along with rising home prices. According to real estate information platform 'Hogangnono,' the complex with the most visitors in the third week of May (18–24) was Dongtan Station Lotte Castle. Typically, newly built complexes ahead of subscription top the visitor rankings, but an existing apartment complex taking the No. 1 spot is interpreted as a sign that the market's attention is concentrating there.
Posts expecting further gains are also appearing one after another on online real estate communities. Reactions include, "If Samsung Electronics and SK hynix bonuses flow into Dongtan early next year, 3 billion won for the standard national layout is possible," and "If they lend up to 500 million won at an annual rate of 1.5%, why wouldn't you buy a home?" Samsung Electronics labor and management recently agreed to pay special bonuses of 100 million to 600 million won per person to employees in the semiconductor (DS) division and to introduce a program offering loans of up to 500 million won at an annual rate of 1.5%.
Following Dongtan, Gwanggyo apartment prices are also nearing 2 billion won. An 84-square-meter unit at 'Gwanggyo Jayeon & Hillstate' in Iui-dong, Yeongtong-gu, Suwon, transacted for 1.935 billion won on Apr. 11. A 98-square-meter unit at 'Gwanggyo Jungheung S-Class' in Woncheon-dong also signed a sale contract for 1.9 billion won last month. The uptrend is continuing in Suji, Yongin, as well. Eighty-four–square-meter units at 'Seongbok Station Lotte Castle Gold Town' and 'e-Pyeonhansesang Suji' in Seongbok-dong, Suji-gu, Yongin, have surpassed 1.7 billion won.
Experts say the rise in home prices in southern Gyeonggi is likely to continue for the time being. Park Hapsu, an adjunct professor at Konkuk University's Graduate School of Real Estate, said, "Dongtan is not only a key residential base for Korea's semiconductor valley, but also a major transport hub served by the Great Train Express (GTX)-A line," adding, "As demand with purchasing power is flowing in, the upward trend could continue in the second half."
Nam Hyuk-woo at Woori Bank's Real Estate Research Institute said, "Expectations for a recovery in the semiconductor cycle are affecting the local real estate market," adding, "The strength of Dongtan and major areas in southern Gyeonggi, which have transport networks and daily-life infrastructure, is likely to continue for the time being."