The strength in apartment prices that began in Dongtan District, Hwaseong, Gyeonggi Province, is showing signs of spreading to adjacent areas such as Byeongjeom District and Osan. With Dongtan home prices surging in a short period and Dongtan District being designated as a regulated area starting this month, buyers appear to be focusing on nearby nonregulated areas where the price burden is relatively lower. In Byeongjeom, an exclusive 84 square meters changed hands for 850 million won, and in Osan, the same size sold for 710 million won, both setting record highs.
According to the actual transaction price disclosure system of the Ministry of Land, Infrastructure and Transport on the 21st, an 84-square-meter unit at Byeongjeom Station IPARK Castle in Byeongjeom-dong, Byeongjeom District, Hwaseong, recorded a transaction at 850 million won on the 13th. The same size also changed hands for 795 million won on the 9th and 800 million won on the 11th this month.
Compared with the upper end of transaction prices for the same size, which was around 680 million won in June last year, it rose by about 170 million won in one year. Until early this year, it mostly transacted in the low-700 million won range, but it surpassed 800 million won last month and set a new record high this month.
Byeongjeom Station IPARK Castle is a large complex of 2,666 households that welcomed residents in 2021. It has access to Byeongjeom Station on Seoul Metropolitan Subway Line No. 1 and sits between Dongtan and Suwon. Priced lower than major new complexes in Dongtan and meeting the conditions of being near a station, large-scale, and newly built, it is seen as absorbing some demand finding it harder to enter Dongtan.
Byeongjeom home prices began rising in the spring, before Dongtan District was designated a regulated area. As the price gap with Dongtan widened, interest shifted to the Byeongjeom Station living area, and the government's announcement on the 30th of last month that it would designate Dongtan District as a speculative overheating zone and an adjustment target area further highlighted Byeongjeom's price competitiveness. The regulations took effect on the 1st of this month.
Transaction prices also rose in some nearby complexes. An 84-square-meter unit at Byeongjeom Station Central Hub City transacted in the 390 million won range last year but recently changed hands around 450 million won.
As prices in Dongtan and Byeongjeom climb, buyer interest is broadening to Osan. The rise has been particularly steep in North Osan, including Oesammi-dong and Naesammi-dong, which are close to Dongtan New Town. According to Real Estate R114, apartment prices in Osan rose 0.37% during the week immediately after the Dongtan regulations. Oesammi-dong increased 2.93%, and Naesammi-dong rose 1.31%.
Record-high transactions also emerged. An 84-square-meter unit at The Sharp Osan Central in Sucheong-dong, Osan, sold for 710 million won on the 7th, marking a new peak. With demand concentrating on relatively new apartments in North Osan near Dongtan, 84-square-meter transaction prices in Osan have climbed into the 700 million won range.
North Osan is adjacent to Dongtan New Town, making it easy to use living infrastructure, and it is also close to the North Osan IC and Osandae Station on Seoul Metropolitan Subway Line No. 1. Local brokerages say inquiries from buyers have increased as the fact that prices are lower than in Dongtan and it is a nonregulated area has come into focus.
Prices are also recovering in some preferred complexes in Osan Segyo New Town. A 75-square-meter unit at Segyo Xi near Osandae Station traded for 490 million to 498 million won in May, but changed hands for 510 million won last month and this month. On the 7th, a 15th-floor listing also transacted at the same price.
An 84-square-meter unit at Osan City Xi Phase 1 in Busandong also rose from the 342 million won range in May to the 350 million to 360 million won range recently. Relatively new complexes in North Osan and preferred complexes in Segyo New Town are leading the price gains, followed by complexes with comparatively lower prices.
Nam Hyeok-woo of Woori Bank's Real Estate Research Institute said, "Some demand is moving to adjacent nonregulated areas such as Byeongjeom and Osan, which share a living area with Dongtan and carry a lower price burden," adding, "With many buyers still prioritizing location and overall lending limits and interest costs remaining, it remains to be seen whether this will lead to a strong 'balloon effect' as in the past."