If you're just dropping by a friend's house because you were already in the neighborhood, what would you say if you were to say it in Korean? Would you use "area" or "neighborhood"? You might be surprised. Let's take a look:
동네 means "neighborhood" or more loosely used in Seoul "town". The criteria is there are houses and it's a fixed, measurable area, like a 동 (洞).
However, 근처 (近處) means "vicinity" or "area" as in 홍대. It could be the name of the actually university, Hongik University, or it could be a reference to the too-many-to-count bars and night clubs in the area. It's just a point of reference; an area of reference to be exact. It depends on each person's frame of reference but it's a relative term. If you're from a small town near 울산, which is in its own right a smaller city, you might just tell people that you're from 울산 근처 just to make it easier on people.
The difference lies in the amount of specificity. Take for instance:
이 동네에서 태어났어요.
I was born in this neighborhood. (this specific area. measurable)
이 근처에서 태어났어요.
I was born in this area. (relative, nonspecific and subjective)
More examples:
우리 학교 근처에 스시집 있어요.
There's a sushi place in my school's area
이대 근처는 집값이 정말 비싸요.
The price of housing around Ewha Womans University is expensive.
이 동네는 마음에 안 들어요.
I don't like this neighborhood.
이 근처에 왔다가 한번 들러 본 거예요.
I was in the neighborhood and I thought I'd drop by
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