Government Efforts Fall Short as Home Prices Post 87th Straight Weekly Rise, the Longest Streak on Record

Apartment prices in southern Gyeonggi Province surged after Samsung Electronics unveiled a housing support program lending up to 500 million won to employees without homes at a low 1.5 percent annual interest rate. Although the government has introduced a raft of real estate policies, home prices rose instead, with Seoul apartment prices outside Gangnam posting an 87th straight weekly gain, setting a new record for the longest rally ever.

Over the weekend, a 108-square-meter unit in a 2,600-household apartment complex near Byeongjeom Station in Hwaseong, Gyeonggi Province, traded in the mid-900 million won range, up about 30 million won from the previous deal. The buyer was registered as a Samsung Electronics employee. Byeongjeom lies within the so-called "shuttle zone" served by Samsung Electronics commuter buses. Demand is believed to have flooded in because the area is not subject to price regulations and homes are more affordable.

Amid this trend, the upswing continued along the southern Gyeonggi semiconductor belt. Apartment prices in Yeongtong District, Suwon, rose the most this week at 0.62 percent, followed by Bundang District in Seongnam at 0.56 percent and Dongan District in Anyang at 0.41 percent. Samsung Electronics plans to pay special performance bonuses of up to roughly 750 million won per person by the end of March next year. A real estate agent in Yeongtong District said he shows homes to about 10 people a week on average, noting that since Samsung loans are expected to be approved, buyers can sign purchase agreements first and then close the deal.

In Seoul, the three Gangnam districts, which are heavily affected by the tax reform, saw prices slip somewhat, while districts such as Seodaemun, Gangbuk, and Gwanak continued to climb, diverging trends across areas.

At a National Assembly audit, Land Minister Hong Ji-seon said the government is comprehensively monitoring factors such as rising home prices and housing subscription competition rates, and that it will closely observe and review the housing market. The government has decided to determine whether to extend or expand land transaction permit zones after assessing home price movements.