"If Even Nowon Has No Listings, Where Can We Go?" Gwangmyeong and Dongtan Also Facing Lease Crisis [Real Estate AtoZ]

"There are no monthly or lease listings available, so I simply can't move at all."

The shortage of apartment lease listings on the outskirts of Seoul is spreading to Gyeonggi Province, causing lease prices to jump by hundreds of millions of won.

Photo of the apartment-dense area as seen from Namsan N Seoul Tower in Seoul. Photo by Yonhap News

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According to the real estate brokerage industry on March 27, the lease price for a 59㎡ unit at Gwangmyeong E-Pyeonhansesang Centreville in Haan-dong, Gwangmyeong City, recently increased from 560 million-570 million won to 600 million won. The lease price for an 84㎡ unit also jumped from the mid-600 million won range to 700 million won. A representative at a nearby brokerage office said, "There is demand coming in from the southwestern districts of Seoul such as Yangcheon, Guro, and Gangseo, but there are no listings available." Another broker added, "As the supply of new units has been exhausted, the number of listings has dropped, causing prices to rise by tens of millions of won."

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According to weekly apartment price trends for the fourth week of March (as of the 23rd) compiled by Korea Real Estate Board, apartment lease prices in Gyeonggi Province rose by 0.13% from the previous week. Dongtan-gu in Hwaseong saw the largest increase in Gyeonggi at 0.40%, followed by Gwangmyeong City (0.34%), Giheung-gu in Yongin (0.29%), Dongan-gu in Anyang (0.28%), and Hanam City (0.23%). The increase in Gimpo City also grew from 0.20% a week ago to 0.26%.

According to Asil, a real estate big data firm, as of March 26, the number of lease listings in Gyeonggi Province decreased by 27%, from 18,056 to 13,238. In Gwangmyeong City, listings dropped by 55.6% from 854 a month ago to 380, recording the largest decline in the province. Compared to three months ago (1,722 listings), the decrease reaches 78%. In Giheung-gu, Yongin, listings fell by 30.4% in three months, from 389 to 271. In Paldal-gu, Suwon, they dropped by 30.8%, from 273 to 189.

The decline in listings in Gyeonggi Province is a result of the shortage that began in Seoul. The total number of lease listings in Seoul fell by 28% in three months, from 23,263 to 16,826, ranking first among all regions nationwide. Both Seoul and Gyeonggi have seen more than a quarter of their lease listings disappear in just three months. Compared to a month ago, the number of listings in Seoul dropped by 10% (1,889 listings), and in Gyeonggi, by 9% (1,337 listings). A representative at a brokerage near Sanggye Jugong 6th Apartment Complex in Nowon-gu, Seoul, said, "There are no monthly or lease listings available," and added, "Nowon-gu is the most affordable area in Seoul, but since there are no listings here either, people inevitably turn to Gyeonggi Province."

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The decrease in mid- to low-priced listings on the outskirts of Seoul was particularly noticeable. In Jungnang-gu, lease listings fell by 38.9% in just one month, from 103 to 63, marking the largest drop. Guro-gu saw a decrease of 34.4%, from 224 to 147, and Geumcheon-gu dropped by 32.4%, from 99 to 67. Nowon-gu and Gangbuk-gu saw declines of 31.3% and 26.2%, respectively.

The decrease in listings is leading to higher lease prices. Lease prices in Seoul rose by 0.15%, up from 0.13% the previous week. In the 14 northern districts of Seoul, where the decrease in listings was most prominent, lease prices rose by 0.19%, higher than the 0.13% increase in the 11 southern districts. Gwangjin-gu and Seongbuk-gu recorded the highest increases among Seoul's 25 districts, both rising by 0.26% from the previous week, followed by Gangbuk-gu (0.24%), Dobong-gu and Guro-gu (0.23%), and Mapo-gu (0.22%).

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