Bundang Sees Highest Apartment Price Increase in One Year... Jeonse Prices Also Surpass Gwacheon to Take First Place

Gwacheon Apartment Jeonse Prices Drop 1.9% While Bundang Rises 38.1%
Migration to Bundang and Pangyo Techno Valley Increases... Residential Demand Near Workplaces Rises
Jeonse Price per Pyeong at 26.47 Million Won in March... Up 7.3 Million Won in One Year
Average Sale Price Also Up 10.01 Million Won in One Year... Surpasses Gangnam to Rank First Nationwide

[Asia Economy Reporter Ryu Tae-min] Bundang-gu, Seongnam has overtaken Gwacheon to become the number one district in Gyeonggi-do for average apartment jeonse prices. While Gwacheon, which once saw a surge in subscription demand, has stabilized, Bundang-gu's jeonse prices have soared due to factors such as its accessibility to Gangnam and the development of the Pangyo Techno Valley.

According to an analysis of KB Real Estate's housing price trends by the real estate information provider Economy Man Lab on the 26th, as of last month, the average jeonse price per 3.3㎡ for apartments in Bundang-gu, Seongnam was 26,476,000 KRW. This is 114,000 KRW higher than Gwacheon’s 26,362,000 KRW per 3.3㎡.

While Gwacheon Apartment Jeonse Prices Fell 1.9%, Bundang Rose 38.1%

The average jeonse price per 3.3㎡ for apartments in Bundang jumped sharply by 7,302,000 KRW (38.1%) from 19,174,000 KRW in March last year to last year’s March. After the lease law revision at the end of July last year, jeonse listings sharply decreased, and with the relocation of large companies like Doosan Heavy Industries and the migration demand from IT workers in Pangyo, jeonse prices surged steeply. According to the Ministry of Land, Infrastructure and Transport’s actual transaction price system, the jeonse price for an 84㎡ (exclusive area) apartment in Yatap-dong’s ‘Jangmi Village (Dongbu)’ in Bundang rose from 470 million KRW in March last year to 780 million KRW last month, an increase of over 300 million KRW. The actual transaction price for an 84㎡ jeonse unit in Sanun Village Complex 4 in Unjung-dong also rose from 560 million KRW in March last year to 800 million KRW last month, up by 240 million KRW.

On the other hand, apartment jeonse prices in Gwacheon are showing a downward trend. The average jeonse price per 3.3㎡ in Gwacheon was 26,885,000 KRW in March last year but decreased by 523,000 KRW (1.9%) over the year. Recently, jeonse prices have been declining for 20 consecutive weeks. For example, a 116.99㎡ jeonse unit in ‘Raemian Sure’ in Wonmun-dong, Gwacheon, was traded at 950 million KRW in March last year but dropped to 892.5 million KRW on the 10th of last month, a decrease of 57.5 million KRW over the year. This is attributed to the influx of over 3,000 new units since the end of last year and the near completion of the Knowledge Information Town sales that began in 2019, which significantly reduced jeonse demand. Especially this year, a much larger supply of 5,553 units is scheduled, which is expected to impact the jeonse market.

Migration to Pangyo Techno Valley Surges... Highest Nationwide Increase in Sale Prices

As real demand buyers flocked to Bundang, sale prices also rose sharply. Last month, the average apartment sale price per 3.3㎡ in Bundang-gu was 44.39 million KRW, up 10.01 million KRW from 34.38 million KRW in March last year. This increase far exceeds the 9.17 million KRW rise in average sale prices in Gangnam-gu, Seoul, making Bundang the district with the highest increase nationwide. The rise in apartment prices in Bundang-gu is also confirmed by actual transaction prices. For instance, a 131㎡ unit in Pureun Village, Sunae-dong, Bundang-gu, which was traded at 1.25 billion KRW in March last year, changed hands for 1.8 billion KRW last month, a sharp increase of 550 million KRW (44%) over the year.

Hwang Han-sol, a research analyst at Economy Man Lab, said, "With the development of the 2nd and 3rd Techno Valleys, IT companies concentrated in Pangyo and Bundang have rapidly grown, forming a high-income residential class. Especially, with the opening of the Shinbundang Line improving accessibility to Gangnam, along with multiple transportation benefits such as the GTX-A line, extension of Line 8, and Wolpyeong Line, apartment prices in the area have surged significantly."

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