As housing prices in Dongtan-gu, Hwaseong, Gyeonggi Province, record historic gains, there is a growing trend of homeowners canceling sales contracts by paying double the deposit to withdraw their properties from the market.

These sellers have determined that even after paying the cancellation penalty, it is more profitable to resell their homes at a higher price, given the rapid rise in property values following the initial agreements.

An analysis of the Ministry of Land, Infrastructure and Transport's real transaction price disclosure system shows that as of June 22, there were 112 cancellations of apartment sales contracts in Dongtan-gu reported for the month of June.

This is three times the 36 cases recorded in May.

Regarding contract cancellations, a seller can terminate a contract by returning double the amount of the deposit received, provided the other party has not yet begun fulfilling the contract.

For instance, if a seller received a 100 million won deposit, they would return the original 100 million won and pay an additional 100 million won. With Dongtan experiencing record-breaking price surges, many sellers are choosing to pay these penalties to cancel contracts, even if it means taking a short-term loss.

According to the weekly apartment price trends released by the Korea Real Estate Board on June 25, apartment prices in Dongtan-gu as of June 22 (the fourth week of June) rose by 1.65% compared to the previous week.

Since February, when statistics for Dongtan-gu began to be compiled separately, the cumulative increase has reached a staggering 11.38%.

This is the highest figure among all cities, counties, and districts nationwide.

Asking prices have also risen rapidly.

A unit with an exclusive area of 84㎡ at Dongtan Station Lotte Castle set a new record high, trading at 2.225 billion won on June 4.

As of June 22, the asking price for high-floor units has climbed to between 2.5 billion and 2.6 billion won.

However, despite having the highest growth rate in the country, the pace of transactions has slowed somewhat.

Unlike the price indicators, voices from the field suggest that inquiries from buyers have decreased.

As asking prices jumped by hundreds of millions of won in just a few weeks, both prospective homebuyers and investors looking to chase the market have taken a step back.

Experts analyzed that some buyers in Dongtan have turned to a wait-and-see approach due to the burden of rising prices and concerns over potential regulations.

An industry official explained, "The market, which was previously characterized by sellers paying double the deposit to withdraw properties, is now in a phase of verifying whether buyers can accept the increased asking prices."

Reported by Kim Ji-wook | Video by Hong Jin-young | Graphics by Yang Hye-min | Produced by SBS Digital News