Samsung, SK hynix towns left behind as Bundang surges 32%

Apartment prices across Greater Seoul have risen for more than a year, but the gains have been strikingly uneven. While Seongnam's Bundang-gu surged more than 30 percent, Pyeongtaek and Icheon — home to major campuses of Samsung Electronics and SK hynix — fell more than 7 percent. Analysts say a combination of new apartment supply, unsold-unit overhang, Seoul accessibility, lifestyle infrastructure and reconstruction expectations has driven a sharp price divergence within the same metropolitan area.

According to the Korea Real Estate Board's weekly apartment price survey released Monday, Greater Seoul apartment prices rose for 66 consecutive weeks from June 9 last year through Sept. 14. Prices fell in 14 cities, counties and districts during that period, however.

Icheon in Gyeonggi Province recorded the steepest decline, dropping 7.28 percent. Pyeongtaek followed with a fall of 7.17 percent.

By contrast, Bundang-gu in Seongnam rose 32.54 percent over the same period, topping the Greater Seoul rankings. The cumulative gap between Icheon and Bundang reached 39.82 percentage points. Gwangmyeong climbed 23.62 percent, and Seoul's Seongdong-gu gained 23.23 percent.

Despite hosting Samsung Electronics' Pyeongtaek campus and SK hynix's headquarters, respectively, Pyeongtaek and Icheon both saw apartment prices fall more than 7 percent. In Pyeongtaek, a wave of new move-ins compounded an already significant unsold-unit burden.

According to real estate platform Zigbang, 1,554 units at Pyeongtaek Hwayangseohee Starhills Central Park Phase 1 moved in last July, followed by 1,700 units at Brain City Daekwang Rozebian Moaelga in August — a combined 3,254 units over just two months.

The Ministry of Land, Infrastructure and Transport's July housing statistics counted 3,511 unsold units in Pyeongtaek at the time, representing about 18 percent of the 19,459 unsold units across all of Greater Seoul.

Actual transaction prices have also fallen well below previous peaks. An 84-square-meter unit at Godeok International New Town Paragon in Pyeongtaek's Godeok-dong sold for 600 million won ($434,000) in August. That is below the 630 million won recorded in June last year and 380 million won less than the all-time high of 980 million won set in September 2021.

Icheon also absorbed a large wave of new move-ins over the summer. In July, 1,822 units at Hillstate Icheon Station Phases 1 and 2 were handed over, and 558 units at Icheon Xi The Rich followed in August, bringing the two-month total to 2,380 units.

Icheon was designated a Korea Housing and Urban Guarantee Corporation unsold-unit management zone in February but was removed from that list recently. While the unsold-unit situation has improved somewhat, analysts say the continued flow of new supply still weighs on the local housing market.

Bundang-gu in Seongnam posted the highest apartment price gain in Greater Seoul over the same period, rising 32.54 percent.

Bundang is prized for its proximity to Pangyo Techno Valley, easy access to Seoul's Gangnam area, and well-developed commercial, education and transport infrastructure. Expectations surrounding first-generation new town reconstruction projects have also fueled the price surge.

According to Seongnam city, applications for this year's special redevelopment zone designations in Bundang's aging planned-city areas totaled 50 zones covering 66,037 units, including combined development zones — about 5.5 times the 12,000 units slated for designation this year and more than the 58,874 units that applied when pilot zones were designated last year.

Seongnam city plans to select target zones through document and on-site reviews, then proceed with public notice, city council consultations and urban planning committee deliberations.

Not all first-generation new towns have followed the same trajectory, however. Goyang's Ilsandong-gu and Ilsanseo-gu fell 3 to 4 percent over the same period despite being subject to the special aging planned-city law and ongoing redevelopment efforts. Neighboring Paju also dropped 4.54 percent.

Other areas that declined included Yeoju (-2.39 percent), Dongducheon (-1.96 percent), Bucheon's Ojeong-gu (-1.74 percent), Siheung (-1.30 percent) and Anseong (-1.04 percent). Gimpo and Incheon's Gyeyang-gu also edged down by less than 1 percent.

The price declines in Pyeongtaek and Icheon are attributed to the recent surge in new apartment move-ins and the weight of unsold inventory. Despite the presence of major employers such as Samsung Electronics and SK hynix, demand has not been sufficient to absorb the expanded housing supply in the short term.

Bundang, meanwhile, benefits from proximity to major employment hubs such as Pangyo, strong access to Gangnam and established lifestyle infrastructure in education and retail — factors that have drawn buyers in, further boosted by reconstruction expectations.

The fact that Ilsan, also a first-generation new town, has weakened despite active redevelopment plans suggests that reconstruction prospects alone cannot explain local price trends. Analysts say differences in transport conditions, underlying residential demand and the scale of new supply are driving the widening price gaps between areas.

Experts say employment anchors such as large corporate campuses are no longer sufficient on their own to predict apartment price gains. Ham Young-jin, head of Woori Bank's real estate research lab, said Pyeongtaek has seen unsold units accumulate as supply concentrated there for years, and that the city also lags preferred areas such as Dongtan in Seoul accessibility. Ultimately, analysts expect price trends across Greater Seoul's housing market to continue diverging based on local conditions — including supply volume, the pace of unsold-unit absorption, and transport and lifestyle infrastructure.