Metropolitan Regulations Push Buyers to Non-Regulated Areas, Sparking 'Balloon Effect'

As property regulations tighten in Seoul and parts of Gyeonggi Province, a distinct 'balloon effect' is becoming apparent, with demand shifting towards areas not subject to these restrictions. Housing transaction volumes and prices are on the rise, primarily in the northeastern Gyeonggi region, which faces less stringent regulatory pressure. The real estate industry attributes this shift to buyers moving to areas that offer better accessibility to Seoul with relatively fewer restrictions on loans, taxes, and resale limitations. With financing and transactions becoming more complex in regulated zones, both genuine homebuyers and investors are considering non-regulated areas as viable alternatives, with the northeastern Gyeonggi region, well-connected to Seoul, identified as a prime beneficiary.

According to KB Real Estate Data Hub, Gwacheon City, designated as a land transaction permit zone, recorded 96 housing sales in the first quarter of this year. This represents a decrease of 122 units compared to the 218 units sold in the preceding quarter and a more pronounced decline when compared to the 432 units sold in the first quarter of last year.

In contrast, non-regulated areas in northeastern Gyeonggi Province have seen an increase in transaction volumes. Namyangju City’s housing sales steadily grew from 2,202 units in the third quarter of 2025 to 2,688 units in the fourth quarter, and 2,920 units in the first quarter of this year. Guri City also experienced a rise, from 861 units in the third quarter of 2025 to 1,293 units in the fourth quarter, and 1,629 units in the first quarter of this year. Housing prices have also joined this upward trend. According to the Korea Real Estate Board, Namyangju City's housing sales price index in April of this year stood at 101.30, a 0.46% increase from the previous month. Guri City's index was 104.16, up 1.16% from the month prior.

Amidst these market dynamics, new apartment complexes in non-regulated areas are also attracting attention. 'Sun Valley Odd County Gapyeong Seorak' is currently being offered for sale in Seorak-myeon, Gapyeong-gun. Located in a non-regulated area, this complex allows resale after six months of purchase and offers a full interest-free installment payment benefit, which is available until the end of this year. The complex is accessible to Jamsil in approximately 30 minutes by car via the nearby Gapyeong Seorak IC, and express buses to Jamsil Station and Cheongnyangni Station operate from the local bus terminal.