Home Prices in Dongtan, Guri, and Giheung Rise Despite Government Regulations

Despite the government's announcement of new regulations, housing prices in Dongtan, Guri, and Giheung, Gyeonggi Province, continue to rise. Although the government designated these areas as regulated zones and land transaction permit districts on the 30th of last month, buying interest concentrated on taking advantage of the window period before the measures took effect. The regulations for the designated zones took effect on the 1st of this month, while the land transaction permit regulations came into effect on the 5th. A real estate agent in the Dongtan area reported that contracts were hastily concluded on June 30, the day before the regulations were enforced.

Dongtan recorded the highest apartment price increase in the country this week, rising by 1.29%. Prices in Yeongtong, Suwon—an existing regulated area served by semiconductor company shuttle buses—also surged by 1.19%. Seongnam's Bundang and Jungwon districts also rose by over 0.4%.

Rising momentum also expanded for both apartment and jeonse (lease) prices in Seoul. Apartment prices in Seoul rose by 0.3%, with Seongbuk-gu and Guro-gu seeing increases of over 0.5%. The cumulative increase in Seoul's jeonse prices this year was recorded at 5.42%.