As Gyeonggi Province Housing Prices Soar, Capital Region Jeonse-to-Price Ratio Hits Lowest in 6 Years
[Asia Economy Reporter Onyu Lim] The jeonse-to-sale price ratio (jeonse price ratio) of apartments in the Seoul metropolitan area, including Seoul, Gyeonggi, and Incheon, has fallen to its lowest level in over six years.
According to the KB Kookmin Bank Live On Monthly Housing Price Trend on the 4th, the jeonse price ratio of apartments in the metropolitan area recorded 65.1% last month. This is the lowest figure in 6 years and 1 month since March 2014, when it was 64.6%. The jeonse price ratio of metropolitan area apartments broke below the 70% mark in October 2018 and has been continuously declining for 1 year and 4 months since January last year. This is because the sale prices in Seoul, Gyeonggi, and Incheon rose more steeply than the jeonse prices during this period.
By region, the jeonse price ratios were 54.7% in Seoul, 73.1% in Incheon, and 65.1% in Gyeonggi. The jeonse price ratio in Seoul has been declining for 1 year and 4 months since January last year after falling below 60% in November 2018.
In Incheon, the jeonse price ratio maintained the 75% range last year but has fallen for four consecutive months this year: 75.0% in January, 74.7% in February, 73.6% in March, and 73.1% in April. In particular, the jeonse price ratios in Yeonsu-gu, Namdong-gu, and Bupyeong-gu of Incheon, which attracted investment demand as non-regulated areas, dropped sharply by 1.9 to 2.7 percentage points compared to the previous month.
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The jeonse price ratio in Gyeonggi Province has declined for five consecutive months from 72.0% in November last year. In March, it recorded 69.8%, falling below 70%. The jeonse price ratios in Suwon, Seongnam Sujeong-gu, Anyang Manan-gu, Bucheon, Yongin Giheung and Suji-gu, Uiwang, and Hwaseong, where apartment prices rose sharply due to regulatory balloon effects, fell below 70% this year, continuing the downward trend.
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