Seoul residents flock to Gyeonggi homes, buying over 11,000 properties in three months

More than 11,000 Seoul residents bought homes in the Gyeonggi province between February and April this year, marking a significant 46.5% increase compared to the same period last year. This surge in demand from the capital city's residents highlights a growing trend of looking towards the more affordable Gyeonggi region as Seoul's housing prices continue to climb.

The influx of buyers from Seoul accounted for 13.6% of all housing transactions in Gyeonggi during this period, up from 10.4% a year earlier. The most popular destinations for these Seoul-based buyers were Goyang, with 899 transactions, followed by Yongin (680), Hwaseong (575), and Bucheon (560). These areas are particularly attractive due to their good accessibility to major parts of Seoul.

In Yongin, the Suji district saw a high concentration of buyers from Seoul, despite being a regulated area. Its lower entry barrier compared to Seoul has driven up property prices, with the cumulative apartment sale price increase in Suji reaching 7.97% as of mid-May. Similarly, Hwaseong's Dongtan district, a non-regulated area, attracted younger buyers interested in gap investments (purchasing a property with an existing tenant's lease). The Dongtan Station Lotte Castle apartment complex, for instance, set a new record high of 2.08 billion won for an 84-square-meter unit this month, the first time units in this size range have sold for over 2 billion won in Dongtan.

Industry experts suggest that the recent surge in Gyeonggi property purchases is also linked to an increase in listings from multi-home owners. With the expiration of a grace period for the capital gains tax surcharge on multi-home owners on May 10, many sought to offload properties. In Yongin's Suji district, the number of available properties increased from 3,334 in early February to 4,975 by late March. Real estate agents noted a rise in inquiries from newlyweds and young couples about properties owned by multi-home owners, indicating a shift in market dynamics.

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The number of properties owned by multi-home owners did not increase dramatically, but there were continuous inquiries from newlyweds and young people asking about properties owned by multi-home owners.