'Suwon Integration'… Real Estate 'Mega Boon'

As the Ministry of the Interior and Safety announced on the 10th that Suwon, Hwaseong, and Osan were selected as targets for autonomous administrative district integration, the real estate industry is expressing optimism that the merger will have a positive impact on the real estate market.

If Suwon, Hwaseong, and Osan cities integrate, a mega-city with an area of 852 square kilometers and a population of 1.75 million—larger than Seoul (605 square kilometers)—would emerge, complete with road facilities and administrative infrastructure centered on Suwon. This could serve as a new investment catalyst due to its favorable location conditions.

Moreover, if the integration proceeds, the integrated areas are expected to receive government financial support and various policy benefits worth hundreds of billions of won. This creates a high possibility that investors will flock to the integrated regions due to potential relief from height restrictions in rural areas and lifting of development restriction zones (green belts).

Ha Jae-yun, a researcher at Real Estate Serve, stated, "Road facilities and administrative infrastructure such as government offices formed around Suwon are expected to have a positive impact on the real estate markets of Hwaseong and Osan cities," and expressed expectations that "residents' opportunities for real estate investment, such as land and apartments, will expand further as a result of regional integration."

Additionally, as the number of residents eligible for local priority supply expands with this administrative district integration, some residents are expected to gain broader access to apartment subscriptions in popular areas.

Suwon, which is incorporated into Gwanggyo New Town, comprises 88 percent of the total area. After municipal integration, residents of Hwaseong and Osan regions will also be able to enjoy the local priority supply benefits that Suwon currently enjoys.

A real estate company representative in Dongtan-myeon, Hwaseong, said, "Approximately 5,000 units are scheduled to be supplied in Gwanggyo New Town from the end of this year through the first half of next year, and with sufficient supply volumes to follow, citizens in Hwaseong and Osan will have higher chances of winning lottery allocations after integration."

The representative added, "In the case of Dongtan-myeon and Byeongjeom-myeon in Hwaseong, which are adjacent to Suwon, if integration occurs, real estate prices could surge two to three times due to the recognition of the Suwon name," and noted that "the majority of local residents support the integration."

Bogeumjari housing newly supplied and converted in Homatil in Suwon, Segyo in Osan, and Bongdam in Hwaseong can also be subscribed using local priority supply eligibility. If the three cities integrate, apartment subscription account holders in the region will have more opportunities to afford their own homes at lower prices.

However, experts note concerns that speculative activity may emerge in certain apartment and land markets within the integrated regions. They also emphasize that establishing self-sufficient functions and comprehensive development plans are essential for the newly formed mega-city to remain competitive.

Lee Mi-young, a team leader at Speed Bank, stated, "Without approaching integration from a long-term and comprehensive perspective, successful integration cannot be achieved," and added, "As the cities complement each other's shortcomings and enhance urban competitiveness, it will naturally have significant impact on the real estate market."