"A Rational Alternative for Gangnam Buyers with 900 Million KRW... Suji Leads Nationwide Apartment Price Growth for Four Consecutive Weeks [Real Estate AtoZ]"

Suji in Yongin Leads Nationwide for 4 Weeks... 84m² Unit Sold for 1.575 Billion KRW
Strong Workplace Proximity to Gangnam and Pangyo... "Time Lag Effect" Along Shinbundang Line
Market Expectations Rise with the "65% Rule" of Bundang Prices
Dongja

While the three districts of Gangnam in Seoul, as well as Mapo, Yongsan, and Seongdong (collectively known as "Ma-Yong-Seong"), along with Bundang and Gwacheon in Gyeonggi Province, which led last year's housing price surge, are taking a breather, surrounding areas are experiencing a sharp rise. Suji-gu in Yongin has ranked first nationwide in price growth for four consecutive weeks, and in Seoul, Dongjak-gu has recorded the highest increase among all districts, showing a typical "gap-filling" market trend. As government regulations push real demand buyers toward more "rational alternatives," this trend is expected to continue for the time being.

Suji Leads Nationwide Growth for Four Weeks... Over 20% Annualized Surge

The exterior view of 'Seongbok Station Lotte Castle Gold Town' in Suji-gu, Yongin City, which was traded last month at a record price of 1.575 billion KRW. Gigi Auction.

According to the "Weekly Apartment Price Trends" by Korea Real Estate Board on January 10, Suji-gu in Yongin maintained the highest price growth nationwide for four consecutive weeks among 178 surveyed cities and districts. The district began heating up with a 0.37% increase (third nationwide) in the first week of December last year, and from the third week of December through the first week of January, it held onto the top spot: 0.43% in the third week of December, 0.51% in the fourth week, 0.47% in the fifth week, and 0.42% in the first week of January.

A weekly growth rate of 0.4-0.5% translates to an annualized surge of over 20%. As Gangnam and Bundang have slowed, buying demand has shifted to Suji, a hinterland area along the Shinbundang subway line. The sharp rise in Suji is interpreted as a "time lag effect," with the price gap between Suji and the higher-tier areas of Gangnam and Bundang narrowing. According to Real Estate Info, over the past six years, whenever Gangnam prices rose, Bundang and Suji followed with a time lag. In particular, the "65% rule," where Suji's prices maintain about 65% of Bundang's, has fueled market expectations.

Recently, as Bundang apartment prices for the standard 84㎡ unit have stabilized at 2.5-2.6 billion KRW, applying the 65% rule suggests Suji still has room to rise to the 1.5-1.6 billion KRW range. In fact, an 84㎡ unit at "Seongbok Station Lotte Castle Gold Town" near Seongbok Station was traded last month at a record 1.575 billion KRW, proving this price catch-up. Around the same time, the pre-sale price for an 84㎡ unit at "Suji Xi Edition" was about 1.5 billion KRW.

Impact of the October 15 Policy... "A Rational Alternative for Real Buyers with Limited Funds"

Suji is a popular area among the younger 2030 generation due to its excellent proximity to workplaces. In fact, among all districts in Gyeonggi Province last year, Suji-gu recorded the highest number of apartment transactions (7,768), surpassing Bundang (6,948) to claim the top spot. This strong demand, combined with the regulatory measures of the October 15 policy, has fueled the upward trend.

Ham Youngjin, head of the Real Estate Research Lab at Woori Bank, explained, "Since the Shinbundang Line connects directly from Pangyo to Gangnam, when housing prices in Gangnam and Bundang surge, Suji emerges as the most rational alternative. Due to loan regulations, real buyers with limited capital are making practical choices by concentrating on Suji, where properties in the 900 million to 1 billion KRW range are still accessible."

The gap-filling phenomenon caused by regulations is also evident in Seoul. In the first week of the new year, Dongjak-gu recorded the highest price increase in Seoul (0.37%), a notable example. Dongjak-gu is attracting buyers as the perception spreads that it is undervalued compared to other areas within the "Hangang Belt," such as Mapo, Yongsan, and Seongdong. Although Dongjak-gu recorded an annual growth rate of 10.99% last year, it had never ranked first in the weekly increase before.

Yoon Sumin, real estate specialist at NH Nonghyup Bank, stated, "Real buyers who find Gangnam or Bundang apartment prices burdensome are turning to areas with excellent living conditions and relatively lower prices, engaging in gap-filling purchases. As loan regulations remain in place, a meaningful upward trend centered on proven hinterland areas is expected to continue for some time."