The apartment jeonse prices in Gwacheon and Hanam, Gyeonggi Province, which seemed to stabilize for a while, are rising rapidly again. Although jeonse prices paused due to a surge in new apartment move-ins at the end of last year and the first half of this year, the supply has stopped, leading to an increase in the rate of rise.
According to the Korea Real Estate Board on the 5th, the jeonse price in Gwacheon, Gyeonggi Province, which rose by 0.03% in the first week of last month, increased by 0.08% in the second week, 0.12% in the third week, and 0.18% in the fourth week, showing a growing weekly increase. This is the exact opposite of the 29 consecutive weeks of jeonse price declines from the first week of December last year to the third week of June this year.
Since last year, new move-in volumes of about 3,500 households, including Gwacheon Central Park Prugio Summit and Gwacheon Weaverfield, caused jeonse prices to fall, but as the large-scale move-ins ended and a gap period began, the trend quickly shifted to an upward trend.
Hanam has also shown a similar pattern, increasing apartment jeonse price rises for three consecutive weeks recently. Hanam experienced move-ins of about 5,700 households in the first half of this year, leading to a decline from February to June, but from mid-June, prices turned upward, reaching a rise rate of 0.25% at the end of last month.
Looking at statistics from the real estate information company Asil, both Gwacheon and Hanam have entered a phase of decreasing apartment rental listings. In the past 20 days, jeonse and wolse listings in Gwacheon decreased by 12.4%, and in Hanam by 14.9%, compared to the previous month.
In the Gyeonggi area, only Bundang-gu, Seongnam, continues to see negative jeonse price growth. Considering the average rise rate of 0.35% in Gyeonggi Province, this is unusual. It is interpreted that the ongoing new supply, such as The Sharp Pangyo Forest and Hillstate Pangyo Elforet, has influenced this. Because of this, the market is saying, "The only way to control jeonse prices has been proven again to be expanding supply."
Many in the industry analyze that the instability of jeonse prices in Seoul and the metropolitan area will continue until next year. This is due to the increasing price instability in the sales market linked to the jeonse market and the lack of clear short-term housing supply expansion measures.
The implementation of the ‘Lease 3 Act’ has also negatively affected the market by increasing the conversion from jeonse to monthly rent and the rapid rise in new jeonse contract prices. A representative from real estate office A near the Hanam Gyosan District said, "Due to the demand waiting for subscription, jeonse listings have become scarce," adding, "The price of mats (rent) also does not seem likely to fall."
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