SEOUL, June 17 (AJP) - An ongoing artificial intelligence (AI)-driven semiconductor boom is spilling over into the housing market, pushing up apartment prices near facilities operated by chip giants Samsung Electronics and SK hynix in satellite cities across Gyeonggi Province.
According to transaction prices disclosed through a database system operated by the Ministry of Land, Infrastructure and Transport, an 84-square-meter unit at an apartment complex in Dongtan was traded for 2.23 billion won (about US$1.5 million) earlier this month, setting a new record high. Dongtan, located near Samsung Electronics' Hwaseong and Pyeongtaek campuses, is one of the key residential areas for its employees.
Realtors say demand for homes has surged recently in Dongtan, Suwon, Yongin and other commuter towns close to the two leading chipmakers, with apartment prices climbing rapidly in recent weeks as buyers rush to secure homes amid expectations that prices could rise further.
A real estate agent there said, "It is one of the most popular areas because Samsung Electronics and SK hynix employees can commute via shuttle bus," adding that buyers are mostly those seeking homes near their workplaces, as well as others coming from farther away to look for listings.
According to the Korea Real Estate Board, a state-run real estate information provider, apartment prices in Dongtan stood at between 1.1 billion and 1.2 billion won as of early this month, rising 1.98 percent in June, far outpacing the national average of 0.1 percent.
The development comes as Samsung Electronics and SK hynix employees received hefty bonuses and benefit from strong stock market gains driven by the rapid growth of the semiconductor sector. Many are also taking advantage of company-backed loan programs, further boosting their purchasing power in the housing market.
They have also emerged as big spenders, with higher incomes driving increased spending on automobiles, luxury goods, and other high-end items.
But market analysts warn that widening income gaps between workers in booming technology sectors and others could intensify housing disparities, affecting the broader economy beyond corporate earnings and stock prices.
According to transaction prices disclosed through a database system operated by the Ministry of Land, Infrastructure and Transport, an 84-square-meter unit at an apartment complex in Dongtan was traded for 2.23 billion won (about US$1.5 million) earlier this month, setting a new record high. Dongtan, located near Samsung Electronics' Hwaseong and Pyeongtaek campuses, is one of the key residential areas for its employees.
Realtors say demand for homes has surged recently in Dongtan, Suwon, Yongin and other commuter towns close to the two leading chipmakers, with apartment prices climbing rapidly in recent weeks as buyers rush to secure homes amid expectations that prices could rise further.
A real estate agent there said, "It is one of the most popular areas because Samsung Electronics and SK hynix employees can commute via shuttle bus," adding that buyers are mostly those seeking homes near their workplaces, as well as others coming from farther away to look for listings.
According to the Korea Real Estate Board, a state-run real estate information provider, apartment prices in Dongtan stood at between 1.1 billion and 1.2 billion won as of early this month, rising 1.98 percent in June, far outpacing the national average of 0.1 percent.
The development comes as Samsung Electronics and SK hynix employees received hefty bonuses and benefit from strong stock market gains driven by the rapid growth of the semiconductor sector. Many are also taking advantage of company-backed loan programs, further boosting their purchasing power in the housing market.
They have also emerged as big spenders, with higher incomes driving increased spending on automobiles, luxury goods, and other high-end items.
But market analysts warn that widening income gaps between workers in booming technology sectors and others could intensify housing disparities, affecting the broader economy beyond corporate earnings and stock prices.
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