[1 year of Toheo District expansion] Increased increase in housing prices in 11 out of 12 Gyeonggi regions before and after designation

(Sejong = Yonhap News) Reporter Oh Jin-song = In 11 of the 12 areas in Gyeonggi Province that were designated as land transaction permit zones (Toheo zone) with the October 15 real estate measures last year, the increase in apartment prices in the year after the regulation was found to have expanded compared to the previous year.

The rate of increase in apartment prices in Gwangmyeong-si, Gyeonggi-do increased from 2% before the regulations to 21% afterward. Suji-gu in Yongin and Bundang-gu in Seongnam also increased by more than 20% after the regulations, greatly expanding the increase.

At this point, it is pointed out that the effectiveness of regulations should be checked and the side effects on end users and tenants should also be considered.

As a result of analyzing the Korea Real Estate Agency's weekly apartment sale price index on the 18th, it was found that the rate of increase in apartment prices increased in 11 out of 12 Gyeonggi regions for 51 weeks before and after the designation of Toheo District on October 20, 2025.

This analysis compares the rate of change in apartment prices for the 51 weeks before designation (October 28, 2024 to October 20, 2025) and the 51 weeks after (October 20, 2025 to October 12, 2026), based on October 20, last year, the designation date of Toheo District.

Apartment prices in Gwangmyeong City rose 1.8% in the 51 weeks prior to designation, but rose 20.8% in the 51 weeks following. The rate of increase increased by 19.0% points, the largest increase among the 12 regions in Gyeonggi Province.

In Suji-gu, Yongin, the growth rate also increased by 14.9 percentage points from 5.2% to 20.1% during the same period.

Bundang-gu, Seongnam, rose 13.8% before designation, and rose 21.7% after designation, increasing the growth rate by 7.9% points. Among the 12 regions in Gyeonggi Province, the rate of increase in apartment prices after designation was the highest.

Anyang Dongan-gu increased from 6.7% to 19.2%, and Suwon Yeongtong-gu increased from 3.1% to 18.7%.

Hanam City increased from 4.3% to 16.8%, Seongnam Jungwon-gu increased from 2.1% to 15.4%, and Seongnam Sujeong-gu increased from 3.6% to 13.2%.

Uiwang-si also increased the rate of increase from 1.0% to 12.0%, Suwon Paldal-gu increased from 1.9% to 9.1%, and Suwon Jangan-gu increased from 1.8% to 7.6%.

On the other hand, Gwacheon City was the only one among the 12 regions in Gyeonggi Province where the growth rate slowed. Apartment prices in Gwacheon City, which rose 16.6% in the 51 weeks prior to designation, rose only 5.4% in the 51 weeks following designation. The increase rate was lowered by 11.2% points.

The overall apartment price growth rate in Gyeonggi-do increased from 0.4% to 6.8% over the same period.

Last year, through the October 15th Measures, the government expanded the entire Seoul and 12 Gyeonggi regions into regulated areas and designated them as Toheo districts. Since July 5th of this year, three additional areas - Dongtan-gu in Hwaseong-si, Giheung-gu in Yongin-si, and Guri-si - have been designated as Toheo districts. Accordingly, Toheo District was expanded to cover all of Seoul and 15 regions in Gyeonggi Province.

In Toheo District, when purchasing an apartment exceeding a certain area, permission from the local government must be obtained, and an obligation to live in the house for two years is imposed after acquisition. The purpose is to suppress speculative demand by limiting so-called ‘gap investments’, which include buying a house with a lease.

As various factors, such as housing supply conditions and changes in demand, affect the rate of increase in apartment prices, it is difficult to determine the effect of Toheo zone designation based solely on price changes before and after regulation. However, as the rise in apartment prices has expanded in major Gyeonggi regions since the designation, controversy surrounding the effectiveness and side effects of extensive transaction regulations continues.

Park Hap-soo, an adjunct professor at Konkuk University's Graduate School of Real Estate, said, "The housing insecurity of the common people is increasing as existing tenants are pushed out and monthly rent prices rise due to the actual residence requirement in the Tohe area." He added, "Government policy should prioritize housing stability for low-income people, but low-income people are actually suffering due to regulations aimed at controlling high housing prices."

He then advised, “As it has been one year since the trade regulations were implemented, we need to collect opinions on the designation of the Tohe area through public hearings and decide on the policy direction based on national consensus.”

In the market, there is also an analysis that the government used the policy card of Toheo District to control the real estate market, which almost recorded a higher growth rate, to a certain extent.

The government's position is that it will decide whether to lift the Tohe Zone designation while observing additional market conditions.

Kim Lee-tak, First Vice Minister of Land, Infrastructure and Transport, said at the first regular housing supply briefing on the 16th, “We will decide whether to lift the land transaction permit zone while observing additional market conditions.” He was concerned that the so-called 'shooting' phenomenon, where housing prices soar when restrictions are lifted, may occur.