Last Week KB Market Price: Gwacheon Jeonse Price Rises 0.14%
Relocation Demand from Over 1,000 Reconstruction Households Drives Increase
Perspective view of Gwacheon Jugong Complex 4 reconstruction. [Provided by GS Construction]
[Asia Economy Reporter Noh Kyung-jo] Last week, the jeonse prices of apartments in Gwacheon-si, Gyeonggi-do recorded the highest increase rate in Seoul and the metropolitan area. The surge in prices is attributed to the upcoming relocation for the reconstruction of Jugong Complex 4, starting from the 1st of next month.
According to the weekly housing price trend statistics by KB Kookmin Bank (as of the 22nd), the jeonse prices of apartments in Gwacheon rose by 0.14% compared to the previous week. This contrasts with the sales prices, which fell by 0.29% during the same period.
Since mid-March, Gwacheon's jeonse prices have fluctuated between stable and rising. Unlike Bundang and Wirye, where both sales and jeonse prices have been declining in the second half of the year amid the global interest rate hike trend, Gwacheon, known as 'Jun-Gangnam' (quasi-Gangnam), is the only area showing an upward trend.
The market attributes this to the relocation demand from Jugong Complex 4. The complex is set to transform from the existing 15-story, 1,110 households to 35-story, 1,437 households through reconstruction. GS Construction won the contract, and the complex will be branded as 'Gwacheon Central Xi.' The relocation period is from September 1 to November 30, with occupancy scheduled for the first half of 2026.
A representative from a local real estate agency said, "Many relocating residents have planned to move to nearby areas such as Indeokwon, Pyeongchon, or Bundang, but since it is a large complex with over 1,000 households, relocation demand still remains." He added, "Tenants who have not yet decided on a new place to live or families who cannot move far due to children's schooling and education issues are monitoring the situation closely."
Consequently, asking prices for listings are gradually rising. Recently, jeonse listings near Gwacheon Station in 'Raemian Gwacheon Central Suite' with an exclusive area of 84㎡ are priced between 1 billion to 1.1 billion KRW, similar to the actual transaction prices at the beginning of the year. The largest complex in Gwacheon, 'Raemian Sur,' has also seen price increases since the end of July, with prices ranging from 900 million to 1 billion KRW.
Real estate agents report that urgent jeonse listings are appearing at 850 million KRW, and asking prices for older apartments scheduled for reconstruction are also rising. The officetel 'e-Pyeonhansesang City Gwacheon,' scheduled for occupancy at the end of October, is also in high demand due to timing.
Meanwhile, attention is focused on whether the jeonse price increase trend will continue as Jugong Complex 5 is also preparing for relocation.
Currently, the reconstruction projects underway in Gwacheon include Jugong Complexes 4, 5, 8, 9, and 10. Except for Jugong Complex 10, which is progressing slowly, all have completed contractor selection. The next relocation target, Jugong Complex 5, currently consists of 15-story, 800 households, and will be reconstructed by Daewoo Construction into 'Summit Maestro,' a 35-story, 1,351-household complex. Completion is targeted for February 2027.
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