Jeonse Prices Double from Last Year... Gwangmyeong Rental Market Surges Past Previous Peak

Jeonse Prices Rise 1.53% in Four Weeks,
Highest Increase in the Seoul Metropolitan Area

Number of Listings Shrinks to One-Tenth of Early Year Levels

Jeonse prices for apartments in Gwangmyeong, Gyeonggi Province, are rising rapidly. After surging around 2022 due to a wave of relocation demand triggered by major apartment complexes undergoing reconstruction and redevelopment, prices then plummeted in the second half of the same year. Recently, however, in some complexes, transactions are occurring at levels even higher than the previous peak.

According to the actual transaction price system of the Ministry of Land, Infrastructure and Transport as of April 17, the jeonse deposit for an 84-square-meter unit at Gwangmyeong Cheolsan Xi The Heritage was traded in the 500 million to 600 million won range around May last year, just before and after occupancy. Last month, the price rose to as high as 900 million won. The latest jeonse listings are now asking for 1.1 billion won.

For a 59-square-meter unit at Gwangmyeong Cheolsan Station Lotte Castle & SK View ClassTige, a new jeonse contract was signed on April 11 for 680 million won. This is an increase of 70 million won compared to a contract for the same unit size a month earlier. When the complex first opened in 2022, units were traded in the 600 million to 620 million won range, but prices later fell to the low 500 million won range. Now, prices have once again surpassed the previous high.

Aerial view of the Humansia Apartment Complex in Soha-dong, Gwangmyeong City.

At Gwangmyeong Station Summit Place, a 59-square-meter unit was traded for 500 million won earlier this month, 550 million won on April 11, and 600 million won on April 15. Even older complexes are clearly seeing an upward trend. At Haan Jugong Complex 4, which is over 20 years old, a 59-square-meter unit was contracted for 270 million won last month, but on April 12, a unit was traded for 350 million won.

The surge in jeonse prices is clearly reflected in the data. According to the weekly apartment price trend from Korea Real Estate Board, jeonse prices for apartments in Gwangmyeong rose by 1.53% over the past four weeks. This is the highest among all basic local governments in the Seoul metropolitan area included in the survey. While jeonse prices are rising across most parts of the metropolitan area, including Seoul, due to a decline in available listings, the upward trend is particularly pronounced in Gwangmyeong.

According to data from the real estate platform Asil, as of this date, there are only 157 jeonse listings available in Gwangmyeong, less than one-tenth of the number at the beginning of the year (1,716). This is the steepest decrease among local governments in Gyeonggi Province. In the past one to two years, newly built complexes in Gwangmyeong led to an accumulation of jeonse listings and kept prices stable, but recently, as inventory has been absorbed, prices have clearly started to rise. The high prices maintained by sales and rental prices for new apartments about to be occupied are also pushing up prices in existing complexes.

A property listing posted at a real estate agency in Seoul. Photo by Hyunmin Kim kimhyun81@

In addition, there are multiple cases where prices for new contracts surge in even-numbered years. After the enforcement of the two major rental laws in 2020, most contracts have been based on a 2+2 year system. While renewal contracts are limited to a 5% increase, new contracts are not subject to this cap, which has led to criticism of a dual pricing system. Comparing reported prices in station-area complexes, the difference between contracts for the same unit size can range from several tens of millions of won to over 100 million won.

Park Won-gap, Senior Real Estate Expert at KB Kookmin Bank, said, "After plunging due to the U.S.-driven interest rate shock in 2022, some jeonse prices have still not fully recovered to their previous peaks. However, with the current supply-demand imbalance, an upward trend is unavoidable for the time being."

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