"Alone in Decline" Will Seongnam's Jeonse Prices Rebound?..."Supply Depletion"

Capital Region Jeonse Prices Soar... Bundang Continues Decline
Rare Jeonse Price Stability Amid Large-Scale New Supply
But Recent Decline Pauses... Some Complexes Rise by Billions
Real Estate114 "Bundang Supply Depleted... Jeonse Rebound"

A monthly rental listing is posted at a real estate agency in Seoul.
[Image source=Yonhap News]

The apartment jeonse (long-term lease) market in Seongnam City, Gyeonggi Province, which has been showing rare stability, is also showing signs of a price rebound as listings are being depleted. Recently, with the jeonse price increase rate in the Seoul metropolitan area reaching its highest level in about six years, concerns about a jeonse shortage in the second half of the year are growing, leading to analyses that clear government-level measures for jeonse are necessary.

According to the weekly apartment price trend survey by the Korea Real Estate Board on the 9th, the jeonse price change rate for apartments in Seongnam, Gyeonggi Province, recorded a stable trend last week. This contrasts with the previous week's -0.10%. Jeonse prices in the Seongnam area have continued to decline due to the move-in effects in major land development districts such as Pangyo Daejang District. Although some areas still have many listings, the rapid depletion of supply is interpreted as causing the price decline to pause.

In fact, in Sujeong-gu, Seongnam, the 22-week consecutive jeonse price decline streak that began in early February ended, and prices turned upward from mid-last month. According to Apartment Real Transaction Data, a real estate big data company, jeonse supply in Sujeong-gu decreased by 14.7% over the past week, the largest drop in Gyeonggi Province.

In Bundang-gu, prices fell by 0.04%, continuing a negative change rate, but the decline was significantly reduced compared to the previous week (-0.17%). Jeonse supply also decreased by 4.4% over the week. Until early last month, Bundang-gu had about 2,100 jeonse listings, but by early this month, the number steadily decreased to about 1,700.

This is a different atmosphere from the accumulation of jeonse supply when about 3,400 new households were supplied in Daejang-dong and other areas in May and June. In this week's Real Estate 114 survey, Bundang's jeonse prices were found to have increased by 0.02%. A Real Estate 114 official stated, "As apartment move-in volumes in Bundang have been depleted, the previously declining jeonse prices have rebounded this week."

In some complexes in Bundang New Town, signs of jeonse price re-increase are also emerging. For example, a 129㎡ (exclusive area) unit in Sangnok Village Woosung, Jeongja-dong, was leased for 950 million KRW on the 1st of last month, then prices dropped to the mid-600 million KRW range on the 15th and 16th of the same month, but this month it was traded again at 880 million KRW. The current asking price has even risen to between 1.05 billion and 1.1 billion KRW.

In Gyeonggi Province, Gwacheon and Hanam ended their jeonse price decline trends that had continued since early this year and recently shifted to an upward trend. These areas also saw jeonse prices pause due to the effects of large-scale supply, but as move-ins have been completed and supply depleted, prices are rising further. In Hanam, a sharp rise has been observed over the past four weeks, with rates of 0.11%, 0.21%, 0.25%, and 0.33%, respectively.

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