Same City, Different Markets — Why Semiconductor Belt Homes Are Surging While Gangnam Dips

Same Metro, Prices Moving in Opposite Directions

The Korea Real Estate Board's third-week September apartment price report revealed a striking contrast. Suwon's Yeongtong district jumped 1.09%, landing among the top performers in the greater Seoul metro area — while Gangnam, Seocho, and Songpa (the three Gangnam districts) actually edged down. Seoul's citywide average rose just 0.13%, yet some areas are climbing 1% while others fall.

Why Is Yeongtong Running So Hot?

Yeongtong is home to Samsung Electronics' main Suwon campus, where tens of thousands of employees work. As the AI and semiconductor boom rolls on, Samsung has been hiring more and raising compensation. Those employees need somewhere to live — buy or rent — and that surge in housing demand is pushing prices up fast. When a company thrives, the neighborhood where its workers live tends to follow.

Why Is Gangnam Sliding?

Prices in the three Gangnam districts had already climbed very high. Large units near Apgujeong Hyundai Apartments carry price tags in the tens of billions of won, and rising interest rates have shrunk the pool of buyers who can afford them. Government housing measures — tighter mortgage rules and heavier taxes — also hit expensive apartments hardest. So Gangnam, already near its ceiling, is cooling, while areas with fresh demand drivers or room left to grow are picking up the slack.

Will This Pattern Last?

If AI and semiconductor industries keep expanding, demand in Semiconductor Belt cities is likely to hold up. Workers in the chip industry often earn well above average, and their desire to put down roots locally provides steady housing demand. A broad market-wide rally — where everywhere rises together — would require meaningfully lower interest rates. In today's high-rate environment, the more selective pattern of 'only places with strong fundamentals rise' could persist for some time.