Invisible lines, visible gaps: administrative boundary effects and housing price differentials

Although institutionally constructed, administrative boundaries can generate significant housing price discontinuities even within otherwise spatially and functionally cohesive urban environments. This study investigates the Surak River City apartment complex, which straddles the border between Seoul Special Metropolitan City and Gyeonggi Province while maintaining nearly identical physical and locational characteristics on both sides. Using unit-level transaction data and multiple regression analysis with year fixed effects, we identify a statistically significant housing price differential of approximately 4.3%, with units located within Seoul’s jurisdiction commanding higher prices. The differential reflects both material advantages, such as access to higher-quality public services, and the symbolic capital associated with being part of the capital city. These findings demonstrate how jurisdictional affiliation is capitalized into housing prices, reinforcing spatial inequality at the micro-neighborhood scale. By isolating the economic impact of administrative delineations, this study contributes case-based empirical insights into how institutional boundaries shape housing market outcomes and urban spatial justice.