Seoul Apartment Jeonse Prices Rise Most in 5 Years... Up 0.19% This Week

Real Estate 114 Analysis: "Tightening of Actual Residence Requirements and Waiting Demand for Housing Subscription Deepen Jeonse Shortage"

[Asia Economy Reporter Yuri Kim] In the first week of November, the apartment sale prices in Seoul saw an expanded rate of increase compared to the previous week. However, the price increase was moderate compared to the jeonse (long-term lease) prices. On the other hand, Seoul apartment jeonse prices showed the largest increase since the first week of November 2015 (November 6, 0.21%). The instability in the jeonse market appears to be spreading throughout the metropolitan area. Demand continued not only in areas with good access to Seoul such as Uiwang and Seongnam but also in planned 3rd generation new towns like Bucheon, Namyangju, and Hanam.

According to Real Estate 114 on the 6th, the rate of change in Seoul apartment sale prices recorded an expanded increase of 0.06% compared to the previous week. Reconstruction and general apartments rose by 0.01% and 0.07%, respectively. Additionally, Gyeonggi and Incheon rose by 0.10%, and new towns increased by 0.09%.

In Seoul, the atmosphere is shifting to buying mainly in mid-to-low priced apartments where jeonse prices have risen sharply. By region, the increases were in the order of Gangdong (0.21%), Gangseo (0.13%), Gwanak (0.13%), Guro (0.13%), Dobong (0.12%), Jung-gu (0.10%), Nowon (0.09%), and Jungnang (0.09%). In Gangdong, apartments such as Godeok Raemian Hillstate in Godeok-dong and Seonsa Hyundai in Amsa-dong rose by 15 to 25 million KRW. In Gangseo, Gangseo Hangang Xi in Gayang-dong and Donga 1st Complex in Yeomchang-dong increased by 15 to 75 million KRW. In Gwanak, Sillim Prugio in Sillim-dong and Samsungsan Jugong 3rd Complex rose by 5 to 15 million KRW. In Guro, Daerim 1st and 2nd Complexes in Sindorim-dong increased by 5 to 10 million KRW, mainly in small to medium-sized units.

In new towns, the increases were in the order of Gimpo Hangang (0.23%), Jungdong (0.16%), Paju Unjeong (0.16%), Pyeongchon (0.13%), Bundang (0.10%), and Dongtan (0.10%). Gimpo Hangang, adjacent to Seoul, saw a balloon effect from being a non-regulated area and the issue of attracting the metropolitan express train (GTX)-D line, leading to increased recent transactions and depletion of listings, resulting in a larger price increase. Gochang Village Hoban Verdiium in Janggi-dong and Gimpo Hangang I-Park in Gurae-dong rose by 5 million KRW. In Jungdong, Boram Aju and Deogyu Jugong 3rd Complex increased by 10 million KRW. In Paju Unjeong, Hanbit Village 3rd Complex Jayuro I-Park and Hanbit Village 2nd Complex Humanville Lake Palace, mainly large units, rose by 5 million KRW. In Pyeongchon, Choweon Daerim in Pyeongchon-dong and Mokryeon 9th Complex Shindonga in Hogye-dong increased by 5 to 10 million KRW.

In Gyeonggi and Incheon, the increases were in the order of Uiwang (0.23%), Suwon (0.19%), Yongin (0.15%), Goyang (0.14%), Gwangmyeong (0.12%), Gimpo (0.12%), and Hwaseong (0.12%). In Uiwang, Uiwang Naeson E-Pyeonhansesang in Naeson-dong and Hyosung Cheongsol in Sam-dong rose by 10 to 20 million KRW. In Suwon, large complexes such as Suwon Hanil Town in Jowon-dong, Hwaseo Jugong 4th Complex in Hwaseo-dong, and Suwon Gwonsun Xi E-Pyeonhansesang in Gwonsun-dong increased by 5 to 15 million KRW. In Yongin, Seongbok Station Lotte Castle Gold Town in Seongbok-dong, E-Pyeonhansesang Suji in Pungdeokcheon-dong, and Yongin Giheung Hyosung Harrington Place in Yeongdeok-dong rose by 2.5 to 15 million KRW.

In the metropolitan area jeonse market, listings remain scarce, with Seoul rising by 0.19%. Gyeonggi, Incheon, and new towns rose by 0.13% and 0.12%, respectively.

In Seoul's jeonse market, the increases were in the order of Nowon (0.35%), Gangseo (0.33%), Gwanak (0.32%), Dobong (0.29%), Gangnam (0.27%), Guro (0.27%), and Seongbuk (0.26%). Outside Gangnam, mid-to-low priced apartments near workplaces led the increase, while in Gangnam, apartments in Daechi-dong led the upward trend. In Nowon, Sanggye Jugong 7th, 10th, and 11th Complexes in Sanggye-dong and Hanshin Cheonggu in Hagye-dong rose by 2.5 to 25 million KRW. In Gangseo, Gayang 6th Complex in Gayang-dong and Donga 1st Complex in Yeomchang-dong increased by 10 to 25 million KRW. In Gwanak, Seonghyeon Donga in Bongcheon-dong and Samsungsan Jugong 3rd Complex in Sillim-dong rose by 10 to 15 million KRW. In Dobong, large complexes such as Sanggye Jugong 17th, 18th, and 19th Complexes in Chang-dong and Bukhansan I-Park increased by 5 to 10 million KRW. In Gangnam, with demand from academy districts, Hanbo Mido Mansion 1st Complex, Seongyeong 1st and 2nd Complexes, and Raemian Daechi Palace 1st Complex in Daechi-dong rose by 10 to 60 million KRW, mainly in large units.

In new towns, the increases were in the order of Gimpo Hangang (0.27%), Dongtan (0.26%), Paju Unjeong (0.18%), Pyeongchon (0.15%), and Bundang (0.11%). In Gimpo Hangang, Gochang Village Hoban Verdiium in Janggi-dong, E-Pyeonhansesang Hangang New Town 2nd Complex in Masan-dong, and Gimpo Hangang I-Park in Gurae-dong rose by 5 million KRW. In Dongtan, Simbeom Unam Firstville in Cheonggye-dong, Dongtan 2 New Town Central Prugio, and Simbeom Hanbit Hanwha Dream Green in Bansong-dong increased by 5 to 10 million KRW. In Paju Unjeong, Unjeong New Town Central Prugio in Mokdong-dong rose by 5 million KRW.

In Gyeonggi and Incheon, jeonse demand is steadily flowing into areas with good transportation access to Seoul as well as planned 3rd generation new towns. By region, the increases were in the order of Uiwang (0.22%), Seongnam (0.21%), Bucheon (0.20%), Suwon (0.17%), Yongin (0.16%), Siheung (0.15%), Namyangju (0.14%), and Hanam (0.14%).

With metropolitan area apartment jeonse prices soaring, the burden on new jeonse tenants is increasing. Among tenants unable to find jeonse homes, some are shifting to purchasing mid-to-low priced apartments with less additional financial burden before house prices rise further. Real Estate 114 analyzed that as apartments available for move-in come onto the market at relatively high prices, the upward trend in house prices is expected to continue. However, due to high house prices, increased holding tax burdens from rising official property prices, and waiting for subscription opportunities, active switching to buying is unlikely to continue vigorously, so the expansion of the price increase is expected to be limited.

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