"Seoul Jungnang·Nowon, Gyeonggi Gimpo·Anyang↑" This Week's Jeonse → Continued Shift to Mid-Low Price Purchases

[Asia Economy Reporter Yuri Kim] The shortage of jeonse (long-term lease) properties has continued to drive demand for mid- to low-priced apartment purchases this week as well. In Seoul, outer areas such as Nowon, Jungnang, and Guro led the upward trend, while in Gyeonggi Province, the non-regulated area of Gimpo (Gimpo Hangang New Town) and the well-connected city of Anyang (Pyeongchon New Town) saw increased price gains. The jeonse market continued to rise due to a lack of listings, with the price increases expanding further in Gyeonggi, Incheon, and new towns.

According to Real Estate 114 on the 13th, apartment sale prices in Seoul rose by 0.06% this week, maintaining the same rate of change as last week. Redevelopment apartments increased by 0.11%, while general apartments rose by 0.06%. Redevelopment apartments saw a larger increase due to individual complex issues in the Gangnam area pushing up asking prices, but overall buying demand remains subdued. Additionally, Gyeonggi and Incheon rose by 0.10%, and new towns increased by 0.15%.

In Seoul, the trend of jeonse demand shifting to purchases continued mainly in outer areas, and areas around downtown office facilities also saw significant price increases. By region, Jung-gu (0.14%), Nowon (0.11%), Songpa (0.10%), Gangdong (0.09%), Yeongdeungpo (0.09%), Jungnang (0.09%), Guro (0.08%), Yangcheon (0.08%), Yongsan (0.08%), and Eunpyeong (0.08%) all rose. In Jung-gu, demand continued intermittently for large apartment complexes, with Namsan Town in Sindang-dong and Samsung rising by 5 to 10 million KRW. In Nowon, Sanggye-dong’s Sanggye Daerim e-Pyeonhansesang, Sanggye Jugong Complex 2 (high-rise), Hagye-dong Jangmi, Hagye 1st Cheonggu, and Junggye-dong Yangji Daerim 1st rose by 5 to 25 million KRW. Songpa also saw continued demand in large complexes with good transportation conditions, including Helio City in Garak-dong, Olympic Family Town in Munjeong-dong, and Jangmi 1st and 2nd in Sincheon-dong, rising by 10 to 45 million KRW.

In new towns, Gimpo Hangang and Pyeongchon, which are non-regulated areas attracting both actual demand and investment demand, led price increases. By region, Gimpo Hangang (0.39%), Pyeongchon (0.29%), Jungdong (0.20%), Bundang (0.17%), Paju Unjeong (0.15%), and Gwanggyo (0.15%) rose. In Gimpo Hangang, complexes such as Hangang New Town Bando Yubora 4th and 5th phases in Gurae-dong, Gimpo Hangang I-Park, Chodang Village Unam Firstville in Janggi-dong, and Gochang Village Hanyang Sujan River Palace rose by 5 to 10 million KRW. In Pyeongchon, Hyangchon Hyundai 4th in Pyeongchon-dong, Chowon Sekyung, Mugunghwa Kumho and Mugunghwa Kyungnam in Hogye-dong, and Hangaram Silla in Gwanyang-dong rose by 5 to 20 million KRW. Jungdong saw about a 10 million KRW increase in Jungdong Deokyu Jugong Complex 4, Boksagol Geonyeong 2nd, and Sangdong Hanarum Korea.

In Gyeonggi and Incheon, Gimpo (0.20%), Anyang (0.18%), Seongnam (0.15%), Suwon (0.15%), Yongin (0.15%), Hwaseong (0.14%), Goyang (0.13%), and Gwangmyeong (0.13%) rose. In Gimpo, Cheongsong Hyundai Hometown Complex 3 in Janggi-dong, Yeongpung in Bukbyeon-dong, Hyundai in Pungmu-dong, and Pureun Village Sinan Silk Valley 2nd in Gamjeong-dong rose by 10 to 20 million KRW. In Anyang, Samsung Raemian in Bisan-dong, Kumho Eoullim in Hogye-dong, and Yeongpung in Seoksu-dong rose by about 10 million KRW. In Seongnam, Dandae Prugio in Dandae-dong, Hanshin in Sinheung-dong, Humansia Seommaeul Complex 3 in Dochon-dong, and Jungang Hills State 1st in Jungang-dong rose by 5 to 15 million KRW.

The metropolitan area jeonse market continued to see a shortage of jeonse listings, with Seoul rising by 0.18%, and Gyeonggi, Incheon, and new towns rising by 0.14% and 0.13%, respectively, expanding the rate of increase.

In Seoul’s jeonse market, all 25 districts rose due to a shortage of listings, with Gwanak (0.39%), Nowon (0.31%), Gangdong (0.27%), Songpa (0.27%), Gangseo (0.24%), Gangnam (0.21%), and Dobong (0.21%) leading the increases. In Gwanak, Gwanak Hyundai and Gwanak Prugio in Bongcheon-dong, and Seonghyeon Dong-A rose by 5 to 20 million KRW. In Nowon, Madle Daerim and Hanil U&I in Sanggye-dong, Hanshin Cheonggu and Hanshin Dongseong in Hagye-dong, and Hyundai Seongwoo in Gongneung-dong rose by 5 to 50 million KRW. In Gangdong, Seonsa Hyundai in Amsa-dong, Godeok Gracium in Godeok-dong, and Dunchon Prugio in Dunchon-dong rose by 10 to 20 million KRW.

In new towns, Gimpo Hangang (0.27%), Wirye (0.23%), Jungdong (0.20%), Gwanggyo (0.19%), and Pyeongchon (0.18%) led the increases. In Gyeonggi and Incheon, Anyang (0.23%), Gwangmyeong (0.22%), Gimpo (0.21%), Seongnam (0.20%), Uiwang (0.20%), Hwaseong (0.20%), Yongin (0.18%), Goyang (0.17%), and Namyangju (0.17%) rose.

As the jeonse shortage continues, jeonse demand is turning toward purchasing mid- to low-priced apartments. Lim Byung-cheol, senior researcher at Real Estate 114, explained, "The prolonged shortage of jeonse listings is pushing up house prices, and this trend is spreading to the Gyeonggi area." He added, "Due to real estate regulations such as increased tax burdens and stricter residency requirements, as well as fatigue from rapid price rises, transactions may be limited. However, if the price increase expands further, it could stimulate homebuyers who had been watching the market anxiously about additional rises, adding more instability to the housing market."

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