Thanks to Semiconductors, Apartment Listings Drop by 10% and Asking Prices Rise by 100 Million Won

Creation of the Largest Semiconductor Cluster in Namsa-eup, Yongin
Surge in Apartment Purchase Inquiries in Namsa District

"I regretted not selling my house earlier, but now that the company paying the highest salary in our country is building a factory bigger than Yeouido in our neighborhood, it's really great to see that this apartment can no longer be ignored." (Resident of ePyeonhansesang Yongin Hansup City Complex 5)

The government announced plans to create the world's largest 'advanced system semiconductor cluster' in Namsa-eup, Cheoin-gu, Yongin-si, Gyeonggi Province, causing the local real estate market to stir. Along with expectations for infrastructure development, inquiries about purchases have surged, listings have been withdrawn, and prices, which had fallen due to the recent real estate downturn, are rapidly rising.

Aerial View of Yongin Semiconductor Cluster

According to the real transaction price application Hogangnono on the 19th, ePyeonhansesang Yongin Hansup City Complex 5 in Namsa-eup, Cheoin-gu, Yongin-si, has ranked among the most popular apartments in real time for five consecutive days since the government revealed its semiconductor cluster development plan on the 15th. Searches for the area, classified by region, have also been significant around Namsa-eup, Cheoin-gu, Yongin-si.

Namsa-eup is located at the southwesternmost edge of Yongin, a city combining urban and rural areas. It lacks living infrastructure and has a deteriorated surrounding environment, so there are almost no residential complexes. Only in the Namsa district are the ePyeonhansesang Yongin Hansup City Complexes 2 to 6 with 6,800 households and ePyeonhansesang Yongin Park County with 75 households established, and these complexes have been identified as the biggest beneficiaries of this announcement.

The government plans to build five semiconductor manufacturing plants and attract 150 companies in the Namsa-eup area by 2042. Samsung Electronics will invest 300 trillion won over 20 years to create the world's largest semiconductor cluster based on a single complex. The goal is to organically connect with existing semiconductor clusters in Giheung, Hwaseong, Pyeongtaek, and Icheon in Gyeonggi Province to establish a semiconductor mega cluster in the southern metropolitan area. The expected direct and indirect production inducement effect is 700 trillion won, with employment inducement effects of 1.6 million people.

e-Pyeonhansesang Yongin Hansup City

Following the government announcement, real estate agencies near Namsa-eup have been flooded with inquiries. For apartments, more than 10% of the previously listed properties have been withdrawn. According to the real estate big data platform Apartment Real Transaction Price, as of the 17th, there were 133 listings for ePyeonhansesang Yongin Hansup City Complex 5, an 11% decrease from 150 listings the previous day. The asking prices for the remaining listings have also risen significantly. A representative from a local real estate agency said, "The atmosphere has changed so rapidly that even urgent listings have been taken off the market again," adding, "The asking price for 30-pyeong units has increased by more than 50 million won, reaching up to 500 million won."

The actual transaction price of these apartments rose to 545 million won for a 113㎡ unit in October 2021 during the real estate boom, but recently fell to the 300 million won range due to high interest rates and declining house prices. On the 2nd, a unit of the same size was traded at 335 million won. However, since the announcement, asking prices have jumped to between 400 million and 500 million won.

However, since the semiconductor cluster development is a long-term plan and the real estate market is currently sluggish, it is uncertain whether this trend will lead to a sharp rise in actual transaction prices. A real estate industry official said, "Once the semiconductor cluster is established, proximity between workplaces and residences will improve, and the deteriorated infrastructure will be upgraded, leading to long-term increases in housing and land prices in the area. But given the current poor real estate market, it will be difficult for actual transaction prices to continue rising sharply in the short term."