"Jeonse Crisis"... Rising Jeonse Prices Spotlight 'Private Rental Housing'

It is expected to become even more difficult to find jeonse listings in the real estate market. Due to the continuous real estate measures tightening regulations, jeonse listings are decreasing and prices are rising. As a result, publicly supported private rental housing, which legally limits rent increases and offers stable housing, is emerging as an alternative.

In fact, the shortage of jeonse listings has intensified since the June 17 measures. According to KB Real Estate data on weekly jeonse market trends, the weekly jeonse supply-demand index was 165.9 on the week of June 15, but rose to 167.5 by the week of July 6, about three weeks after the measures. Considering that a jeonse supply-demand index above 100 indicates a shortage of jeonse supply, it shows that jeonse listings were already scarce and have become even scarcer after the announcement of the measures.

Jeonse prices have also steadily increased. According to Real Estate 114 data, the average jeonse price per 3.3㎡ nationwide was 8.33 million KRW on June 19 and rose by 0.36% to 8.36 million KRW on July 17. Seoul showed the highest increase, rising 0.45% from 15.3 million KRW to 15.41 million KRW during the same period, while Gyeonggi Province also increased by 0.23%, from 8.4 million KRW to 8.43 million KRW.

The industry attributes this rise in jeonse prices to market anxiety caused by the real estate measures. For example, following the July 10 measures that increased taxes on multi-homeowners, many landlords are converting existing jeonse properties into semi-jeonse or monthly rent forms to pass the increased taxes onto tenants. This has further reduced the availability of jeonse listings. Additionally, demanders restricted by loan regulations face higher barriers to home ownership and prefer jeonse listings, but due to supply shortages, the situation has become a vicious cycle.

As soaring jeonse prices and market uncertainty worsen housing instability, interest in publicly supported private rental housing with high stability is growing. These apartments are priced more affordably and reasonably than surrounding apartments, and allow flexible application of conversion rental conditions and deposit changes upon renewal before moving in.

‘Pyeongtaek Godeok Eoullim Square,’ launched by Kumho Construction in August in Block A11 of Godeok International New City, Pyeongtaek, Gyeonggi Province, is attracting attention from local demanders as publicly supported private rental housing. This complex guarantees long-term stable residence with an 8-year lease period and limits rent increases to 5% or less every two years, easing economic burdens. Additionally, conversion rental conditions tailored to circumstances before moving in provide a comfortable rental environment.

Pyeongtaek Godeok Eoullim Square consists of 13 buildings ranging from basement level 1 to a maximum of 20 floors, with a total of 660 households sized between 69 and 105㎡. By unit size, there are 30 units of 69㎡, 389 units of 84㎡, 80 units of 99㎡A, 80 units of 99㎡B, and 81 units of 105㎡, offering a balanced mix from small to large floor plans.

Since publicly supported private rental housing is constructed by private builders, it applies the same products and interior finishes as general branded apartments, making it superior in quality compared to public rental housing. Pyeongtaek Godeok Eoullim Square, as a Kumho Construction branded apartment, features excellent design. All units are oriented south to maximize natural light and ventilation, and the complex is designed like a park with underground parking and pedestrian-focused layouts for enhanced safety. Moreover, rental management and facility maintenance are operated by specialized companies.

Unlike in the past, publicly supported private rental housing is now located in areas with excellent residential infrastructure, offering proximity to subway stations and various convenience facilities. Furthermore, there are no restrictions on subscription eligibility; anyone aged 19 or older without home ownership can apply. There are also no tax burdens related to acquisition or ownership, such as acquisition tax or property tax.

Additionally, Pyeongtaek Godeok Eoullim Square is situated in the center of Godeok New City, adjacent to ‘Pyeongtaek Arts Center,’ Homeplus (Songtan branch), and Godeok Waterfront Park, with the Godeok New City administrative town also being developed nearby. The complex is conveniently located near the BRT bus rapid transit station and Seojeong-ri Station on Subway Line 1, facilitating easy transportation.

A sales official stated, “Pyeongtaek Godeok Eoullim Square is gaining attention in the real estate market as a safe housing product that can alleviate housing instability caused by rising jeonse prices. The project is located in the heart of Godeok New City, equipped with infrastructure for transportation, administration, and commerce, attracting inquiries not only from Pyeongtaek but also from neighboring areas.”