In December, 30,000 Households Move In, the Highest Volume Within the Year... Will It Affect Jeonse Prices?

1,8391 Households Move In, the Largest Volume in the Seoul Metropolitan Area Since January 2021

Concentration of New Apartments May Expand the Range of Jeonse Price Adjustments

[Asia Economy Reporter Kim Min-young] Due to the year-end rush of move-ins, a total of 30,353 households nationwide will move in December, marking the largest supply volume this year. In the Seoul metropolitan area alone, 18,391 households will move in, the largest volume since January last year. As many landlords put their homes up for jeonse to prepare the balance payment for new apartments, the decline in jeonse prices is expected to widen, especially in areas with concentrated move-in volumes.

According to Zigbang on the 28th, the total apartment move-in volume nationwide in December is 30,353 households, the largest supply this year. This is about 36% more than the previous month (22,347 households) and about 3% more than the same month last year (29,405 households). The year-end is a period when many complexes try to move in before the new year, concentrating the volume. In particular, the Seoul metropolitan area will see 18,391 households move in, about 18% more than last year, marking the largest volume since January 2021 (20,402 households).

By region, Gyeonggi has the largest volume with 13,111 households, followed by Incheon with 3,100 households, and Seoul with 2,180 households. In Gyeonggi, 19 complexes will move in, including Hwaseong, Yangju, and Goyang. In Incheon, two large-scale complexes will move in, located in Bupyeong-gu and Seo-gu. Seoul, which has recently experienced sluggish move-in volumes, will see three redevelopment projects completed and move in in Mapo, Seocho, and Seodaemun districts.

In the provinces, a total of 11,962 households will move in, a 48% increase compared to the previous month. By region, the largest move-in volumes are in Busan, Chungnam, Daejeon, and Daegu, in that order.

Among the complexes scheduled to move in next month is Mapo The Classy, located in Ahyeon-dong, Mapo-gu, Seoul. This complex, rebuilt from Ahyeon 2 District, consists of a total of 1,419 households with small to medium-sized units ranging from 43 to 84 square meters. It is a station-area complex within walking distance of Edae Station and Ahyeon Station on Subway Line 2.

Daegok Station Lotte Castle El Classy is located in Todang-dong, Deogyang-gu, Goyang-si, Gyeonggi-do. It is a reconstruction of Neunggok Union Housing and consists of a total of 834 households with units ranging from 59 to 84 square meters.

Banjeong I-Park Castle 4 and 5 complexes are located in Banjeong-dong, Hwaseong-si, Gyeonggi-do. Complex 4 has 986 households with units ranging from 59 to 105 square meters, and Complex 5 has 1,378 households with units ranging from 59 to 156 square meters, forming a large-scale complex with a total of 2,364 households.

Bupyeong SK VIEW Haemoro is located in Bupyeong-dong, Bupyeong-gu, Incheon. It redeveloped the northern area of Bugae Seo Elementary School and consists of a total of 1,559 households with units ranging from 36 to 84 square meters.

In areas where large-scale move-ins are underway, it is expected to affect the local jeonse prices. In the short term, there is a high possibility that the volume of jeonse properties priced lower than market prices will increase.

Ham Young-jin, head of Zigbang Big Data Lab, said, "With interest rate hikes and the shift from jeonse demand to monthly rent, monthly rent transactions have surpassed jeonse transactions. As many landlords put their homes up for jeonse to prepare the balance payment for new apartments, the decline in jeonse prices is expected to be greater, especially in areas with concentrated move-in volumes."

Ham advised that for new apartments, jeonse listings priced lower than market prices are being released, so tenants need to be more cautious. He said, "Since these are likely urgent listings by new apartment owners to prepare the balance payment, it is important to carefully assess whether individual listings include loans, compare with the sale price, and consider the possibility of auction proceedings to determine if they are risky properties."