Residents of Suwon, Yongin and Hwaseong bought more than 25% more properties in Seongnam's Bundang district and Seoul's Songpa district over the past year, outpacing the overall growth in buyers of 2.3% by more than tenfold. Analysts attribute the increase to larger performance bonuses and expanded in-house lending at semiconductor companies enjoying a boom, combined with rising home prices across the country's chip belt that have fueled demand to trade up to more desirable neighborhoods.
A total of 1,354 buyers of multi-unit buildings in Bundang and Songpa in the first nine months of this year listed addresses in Suwon's Yeongtong district, Yongin's Giheung district or Hwaseong, according to the Supreme Court's registry information service on the 19th. That was up 272, or 25.1%, from 1,082 in the same period last year. Total buyers of multi-unit buildings in the two districts rose just 2.3% to 20,090 from 19,640 over the same period, meaning the growth rate among chip belt residents far exceeded the overall figure.
The increase was most pronounced in Bundang. Buyers from Yeongtong, Giheung and Hwaseong purchasing multi-unit buildings in Bundang rose 27.1% to 991 this year from 780 last year. Their share of all buyers climbed 2.3 percentage points to 10.6% from 8.3%. By contrast, purchases within Bundang by its own residents fell 6.2% to 4,677 from 4,984 over the same period.
A similar pattern emerged in Songpa. Buyers from Yeongtong, Giheung and Hwaseong purchasing multi-unit buildings in Songpa rose 20.2% to 363 this year from 302 last year. Buyers with Yeongtong addresses increased 13.6% to 117 from 103, while those from Hwaseong surged 49.5% to 151 from 101. Total buyers in Songpa rose only 4.1%. Buyers with Hwaseong addresses were particularly notable, rising 41.8% to 522 from 368 across Bundang and Songpa combined, a faster pace than Yeongtong or Giheung.
Prices are also climbing at apartments near shuttle bus routes operated by semiconductor companies, properties known locally as "shuttle-access" complexes. A 117-square-meter unit at Pangyo Prugio Grand Blue in Baekhyeon-dong, Bundang, sold for 4.18 billion won in May, up 730 million won from 3.45 billion won in September last year, according to transaction data from the Ministry of Land, Infrastructure and Transport. An 84-square-meter unit at Yangji Village Kumho Complex 1 in Sunae-dong, Bundang, rose 340 million won to 2.39 billion won in July from 2.05 billion won in September last year. An 84-square-meter unit at Helio City in Garak-dong, Songpa, gained 150 million won to 3.1 billion won in August from 2.95 billion won in July last year.
Rising incomes from improved earnings at semiconductor companies and expanded financial support are cited as factors strengthening the purchasing power of residents in Suwon, Yongin and Hwaseong. After Samsung Electronics and its union agreed in May to allocate 10.5% of the device solutions division's business performance to a special bonus pool, the union estimated that employees in the memory business division could receive about 750 million won before taxes, including existing overall performance incentives.
A real estate broker in Bundang said many Samsung employees had come in to sign contracts with closing dates timed to the payout. "The actual bonuses are scheduled to be paid in installments from late March or early April next year, but many employees were coming in to sign contracts with their final payment dates set for then," the broker said. "Expectations are high, and prices are moving accordingly." Since September this year, Samsung Electronics has also been running an in-house lending program that offers employees who do not own a home up to 500 million won at an annual interest rate of 1.5% to buy a house.
Trading up to Bundang and Songpa is also tied to rising home prices in residential areas serving the semiconductor industry. Apartment prices in Suwon's Yeongtong district have risen a cumulative 16.19% this year, according to the Korea Real Estate Board's weekly apartment price survey for the second week of October, based on data as of the 12th. That compares with a cumulative gain of 2.39% through the same week last year. Yongin's Giheung district also saw its gain widen sharply to 13.95% this year from 0.06% last year. Hwaseong's Dongtan district has posted a cumulative increase of 20.14% since separate statistics began being compiled in February this year. Analysts say the steep price gains across the chip belt have created conditions for move-up demand, with sellers using proceeds from their existing homes to buy in preferred areas such as Bundang and Songpa.
Access to semiconductor worksites and strong residential amenities are cited as the main reasons buying demand is concentrating in Bundang and Songpa. Both fall within shuttle-access range while also offering well-established school districts, transportation and local infrastructure. Bundang is close to existing residential areas including Suwon's Yeongtong, Yongin's Giheung and Hwaseong's Dongtan, while Songpa is a major Seoul residential area centered on Jamsil with strong schools and transit links.
The upward trend in these areas is expected to continue for some time. "Move-up buying by households that have sold existing homes in southern Gyeonggi Province is occurring in a chain reaction, sustaining price strength in major residential areas such as Bundang," said Nam Hyuk-woo, a real estate researcher at Woori Bank. "Over the medium to long term, the inflow of liquidity that began in Suwon could reinforce downward price rigidity in the greater Seoul area, centered on homes priced at 2.5 billion won or less, which are eligible under Samsung Electronics' in-house lending program."