본문 바로가기
bar_progress

Text Size

Close

Jeonse Market Rebounds... Apartment Listed at 100 Million KRW per Pyeong Appears

'Brunen Cheongdam' 219.96㎡ 7.1 Billion KRW

Jeonse Market Stirring Again
Listings Decreasing While Large-Scale Relocation of Gangnam Reconstruction Apartments Approaches

Jeonse Market Rebounds... Apartment Listed at 100 Million KRW per Pyeong Appears Brunnen Cheongdam exterior view. (Provided by Brunnen Cheongdam website)

[Asia Economy Reporter Kim Hyemin] Anxiety is resurfacing in the Seoul apartment jeonse market, which had been quiet even during the spring moving season. While supply continues to decrease, concerns are rising that jeonse prices may rise again as large-scale relocations are expected, mainly in the Gangnam area redevelopment complexes. Apartments with jeonse deposits exceeding 100 million KRW per pyeong have also appeared.


According to the Ministry of Land, Infrastructure and Transport's real transaction price disclosure system on the 10th, a 219.96㎡ (exclusive area) unit in ‘Brunnen Cheongdam’ in Cheongdam-dong, Gangnam-gu, Seoul, was leased in February with a deposit of 7.1 billion KRW. This amount surpasses the previous highest price of 5 billion KRW for a 271.38㎡ unit in Galleria Foret, Seongsu-dong 1-ga, Seongdong-gu, in November 2018, marking the highest price ever nationwide.


The deposit per 3.3㎡ is 106.71 million KRW, marking the first time an apartment deposit has exceeded 100 million KRW per pyeong. Brunnen Cheongdam, completed in June 2019, consists of 8 households from basement level 3 to ground level 7. It is a top-tier apartment designed with a triple duplex structure that uses floors 1 to 3 all at once.


So far this year, there have been a total of four cases where jeonse deposits exceeded 4 billion KRW, including Brunnen Cheongdam. Following a 195.388㎡ unit in I-Park, Samseong-dong, Gangnam-gu, which was leased for 4 billion KRW in February, a 200.707㎡ unit in Acro Seoul Forest, Seongsu-dong 1-ga, Seongdong-gu, was leased for 4.3 billion KRW in March. On the 30th of last month, a 206.8953㎡ unit in Nine One Hannam, Hannam-dong, Yongsan-gu, was leased for 4 billion KRW.


The market views the polarization between renewal contracts and new contracts as intensifying, leading to a series of record-high jeonse prices. In fact, the jeonse market became sharply unstable after the implementation of the Lease Protection Act last July, which included the right to request contract renewal and the cap on rent increases. As of January this year, the average price difference between renewal contracts, which must raise rent within 5%, and new contracts reached 82.25 million KRW, deepening the dual-price phenomenon.


From February to April, the market somewhat stabilized, but this month it is again facing supply shortages and price increases. According to Apartment Real Transaction Price, a real estate big data company, the number of jeonse listings in Seoul was 21,901 as of this day, down 8.7% from 23,962 a month ago. The Korea Real Estate Agency's jeonse supply-demand index also rose from 103.4 to 104.4. This index is based on 100, and a value above 100 means demand exceeds supply. According to KB Kookmin Bank’s Liv Real Estate, Seoul apartment jeonse prices, which had remained at 0.13% for three consecutive weeks in April, increased to 0.18% and 0.17% afterward, showing a larger rise.


Meanwhile, with the decision to begin relocation next month for Banpo Jugong Complex 1, 2, and 4 districts (2,120 households) in Banpo-dong, Seocho-gu, which is scheduled for redevelopment, there is a possibility that the jeonse shortage will reoccur due to the rapidly increasing demand.


© The Asia Business Daily(www.asiae.co.kr). All rights reserved.

Special Coverage


Join us on social!

Top