Sellers Cancel Deals by Paying Double the Deposit as Dongtan Housing Prices Surge

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The semiconductor boom is driving up not only stock prices but also housing prices. Following the impact of substantial performance bonuses, apartment prices in Dongtan-gu, Hwaseong, Gyeonggi Province, have jumped by more than 2% in a single week. Prices are rising by tens of millions of won in just seven days. There are even cases where sellers are paying double the deposit to cancel contracts and withdrawing their properties from the market.

Reporter Baegun has the story.

[Reporter]

A residential-commercial complex in Dongtan-gu, Hwaseong, Gyeonggi Province, which is part of the "semiconductor belt."

In the middle of last month, an 84-square-meter unit traded for 1.98 billion won, but it hit a new record high early this month, rising to 2.225 billion won.

The current asking price has now soared to 2.5 billion won.

[Yoon Ki-won / Real Estate Agent in Dongtan-gu, Hwaseong, Gyeonggi Province: "After the (Samsung Electronics performance bonus) agreement was reached, prices began to skyrocket. About one-third of the purchase inquiries are from people working at Samsung or Hynix..."]

The weekly growth rate for apartment prices in Dongtan-gu reached 1.98% last week and climbed further to 2.22% this week, marking the highest increase in the country.

[Yoo Chang-wan / Real Estate Agent in Dongtan-gu, Hwaseong, Gyeonggi Province: "There are even cases where sellers pay back double the deposit—nearly 200 million won—to cancel contracts and withdraw their properties. (Buyers) are also sometimes putting down larger deposits."]

Weekly price increases have also accelerated in Byeongjeom-gu, Hwaseong, as well as Suji-gu and Giheung-gu in Yongin—areas known as "shuttle-convenient" zones located along the shuttle bus routes of semiconductor companies.

As signs of overheating emerge, there is speculation that some areas in Gyeonggi Province, including Dongtan, could soon be designated as regulated zones.

Apartment prices in Seoul, where the average housing price surpassed 1 billion won for the first time last month, also rose by 0.27%, continuing the trend from last week.

With a decrease in available listings, a "triple upward trend" is continuing, with prices rising across sales, jeonse (long-term deposit rental), and monthly rent.

[Park Won-gap / Senior Real Estate Specialist at KB Kookmin Bank: "To stabilize the housing market, there is a need to significantly increase the supply of non-apartment housing, such as officetels, which can be built relatively quickly."]

With the downward pressure from properties owned by multi-homeowners effectively over, the tax reform plan to be announced next month and the recent rise in interest rates are considered key variables for the market.

(Reported by Kang Dong-cheol | Video by Yoon Tae-ho | Graphics by Jang Chae-woo)
※ Please note: This article was translated by AI and may contain errors.