Hanam, Jeonse Prices Rose 13.3% Compared to End of Last Year

Population Growth in Gyeonggi-do: Gwacheon Ranks 1st, Hanam 2nd
Limited Influx of External Population and New Apartment Supply
"It Will Be Difficult to Find Jeonse Listings for the Time Being"

[Asia Economy Reporter Yuri Kim] The pre-sale schedule for the 3rd phase new towns has been announced, sparking intense interest in the respective areas. In particular, as recent various opinion polls show the highest subscription intention in Hanam, interest in the area has grown, and movements considering relocation to meet residency requirements have also been observed.

According to Zigbang on the 14th, the Jeonse (long-term lease) prices of apartments in Hanam surged by 13.3% compared to the end of last year, marking the largest increase within the Gyeonggi region. The second highest increase was in Yongin, which rose by 11.1%. Hanam and Yongin's increases were more than twice the average rise in Gyeonggi (4.9%). Among the 3rd phase new towns, Goyang, where the Changneung district is located, also showed a higher increase rate (5.2%) than the Gyeonggi average.

On the other hand, Gwacheon recorded a Jeonse price change rate of -7.9% compared to the end of last year. The Jugong 4 complex, which is undergoing reconstruction, recently received project implementation approval, and it is expected that relocation will soon begin once management disposition approval is processed, leading to a downward adjustment in Jeonse prices, according to Zigbang. The start of move-ins at Prugio Summit this year has also contributed to the weakening of Jeonse prices in surrounding complexes.

Compared to the end of last year when the regional residency requirement for subscription regulations was strengthened from 1 year to 2 years, Gwacheon showed the highest resident registration population growth rate in Gyeonggi Province at 6.2%. The population increased from 58,289 at the end of last year to 61,902 in August this year. Following were Gimpo and Hanam, each with a 4.9% increase.

Gwacheon, adjacent to Seoul's Gangnam area, has consistently attracted interest. Zigbang stated, "It is highly likely that relocation from outside Gwacheon to within Gwacheon was steadily underway until the end of last year to apply for the first pre-sale of Gwacheon Knowledge Information Town this year," adding, "Relocation probably continued to target the upcoming Gwacheon district and others." The actual transaction price per 3.3㎡ of apartments in Gwacheon this year was 45.62 million KRW, showing a tendency to follow the housing price trend of Gangnam (54.99 million KRW).

Hanam, also adjacent to Seoul's Songpa and Gangdong areas, has apartment prices lower than Seoul, making it likely that demanders using the same living area considered relocating to secure favorable subscription conditions. Hanam's transaction price per 3.3㎡ is around 22.91 million KRW, whereas Songpa and Gangdong are approximately 38.36 million KRW and 27.15 million KRW respectively, indicating a significant price advantage for residents moving within the same living area.

Other 3rd phase new town areas such as Namyangju and Goyang also saw slight population increases compared to the end of last year. Conversely, Incheon and Bucheon experienced a decrease in resident registration population compared to the end of last year, indicating no significant influx of population from outside regions for subscription purposes.

To increase the chances of winning in the 3rd phase new towns or pre-sale areas, it may be advantageous to target opportunities prioritized for local residents. Since a mandatory residency period of up to two years must be fulfilled before the main subscription, if aiming for pre-sale next year, relocating to the target area within this year could increase the likelihood of subscription success.

Hanam, where Jeonse prices have recently risen significantly, has an apartment Jeonse transaction price formed at around 14.33 million KRW per 3.3㎡. Recently, a 112A type unit in Pungsan-dong Hanam Hills Park Prugio 2 complex was traded at around 500 million KRW. This complex was occupied in September 2018, so there is a possibility of a two-year Jeonse expiration unit becoming available. The Hanam Gam-il Sweet City 14 complex, which moved in this year, has a 71A type Jeonse transaction price formed at around 400 million KRW.

Gwacheon, which also has high subscription demand along with Hanam, shows a large gap in Jeonse prices between new apartments and older complexes. The Gwacheon Prugio Summit, which started move-ins this year, reported transactions for the 80C1 type at around 790 million KRW. The Raemian Central Suite, which has been occupied for two years, reported transactions for the 116A type at around 860 million KRW. In contrast, older apartments undergoing reconstruction showed reported prices for 101~103㎡ units ranging from 490 million to 590 million KRW.

Ham Young-jin, head of Zigbang Big Data Lab, said, "Compared to the significant increase in resident registration population due to external population inflow in Hanam and Gwacheon, the number of Jeonse transactions from two years ago was relatively small, and there are not many new apartments either," predicting, "It will not be easy to find Jeonse listings for the time being." However, he added that Gwacheon, with a population in the 60,000 range, is relatively small compared to other areas, so the shortage of listings may not be as severe as in Hanam.

Namyangju and Goyang have increased resident registration populations within the region, but not by a large margin. Although apartment Jeonse prices are maintaining a slight upward trend, there is more availability of Jeonse renewal listings and new apartment move-in volumes compared to Hanam and Gwacheon, so Zigbang analyzes that a severe Jeonse shortage is unlikely.

This content was produced with the assistance of AI translation services.