This Month, Another 10,000 Households Move In to Gyeonggi-do, Price Drop Amid Worsening 'Reverse Jeonse Crisis'

A large-scale apartment construction site in Gyeonggi-do. [Image source=Yonhap News]

[Asia Economy Reporter Cha Wanyong] As the real estate market stagnates and unsold units increase in Gyeonggi-do, a phenomenon called 'reverse jeonse crisis' is occurring, where landlords cannot find tenants due to a large number of move-ins. With more than 10,000 households scheduled to move in this month as well, it is expected that the unsold units and reverse jeonse crisis will further increase.

According to Real Estate R114 on the 4th, the scheduled move-in volume in Gyeonggi-do this month is 13,801 households. This accounts for 76.8% of the 17,950 households scheduled to move in across the metropolitan area (Seoul, Gyeonggi, Incheon). Large-scale move-ins have been ongoing in Gyeonggi-do, with 10,970 households in July and 11,938 households in August.

In particular, move-ins are concentrated in Hwaseong-si (3,764 households), Seongnam-si (2,411 households), Namyangju-si (1,960 households), and Suwon-si (1,594 households), where apartment prices have recently shown weakness, intensifying competition among landlords seeking tenants.

In fact, the large complex 'Hillstate Prugio Suwon' in Paldal-gu, Suwon-si, which recently started move-ins with 2,586 households, is seeing jeonse prices drop day by day. Until July, the jeonse deposit for an 84㎡ unit was 450 million KRW, but it dropped to 350 million KRW in August, and recently (as of the 3rd) units priced at 330 million KRW have appeared.

The jeonse price for an 84㎡ unit in Seongnam's 'Shinheung Station Haneulchae Landers One' (2,411 households), scheduled to move in this month, was in the 600 million KRW range in the first half of this year, but prices began to decline last month and recently have dropped by 430 million KRW.

This decline in jeonse prices, centered on large-scale move-in apartment complexes, is also affecting the overall jeonse prices in Gyeonggi-do. According to KB Kookmin Bank, the average apartment jeonse price in Gyeonggi-do in July was 391.61 million KRW, down 450,000 KRW from the previous month (392.06 million KRW). This is the first decline in three years since July 2019.

Meanwhile, Gyeonggi-do, where large-scale move-ins are underway, continues to see an increase in unsold units due to a transaction freeze this year.

According to the Ministry of Land, Infrastructure and Transport, apartment sales transactions in Gyeonggi-do in July were 4,567 cases, a 72% decrease compared to 16,580 cases a year ago. Malignant unsold units after completion increased by 23.8% in July to 614 cases in Gyeonggi-do alone. The total unsold units in July also increased by 2.2% to 3,393 cases compared to the previous month.

In particular, other ownership transfer statistics for registering pre-sale rights also dropped to 2,919 cases in July, a 72% decrease compared to 10,459 cases the previous year. Considering that pre-sale performance in July this year was 4,771 cases, a 33% decrease from last year (7,129 cases), the decline is even more significant.

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