"Jeonse Prices Are 250 Million Won Lower Than Neighboring Complexes"... Raemian Onepera Ahead of Move-In [Real Estate AtoZ]

59㎡ Jeonse Starting at 945 Million Won... Bangbae Gran Xi at 1.2 Billion
Move-in Periods Typically See Lower Jeonse Prices, but Cash Tenants Drive Further Discounts
Only 14,000 New Move-ins Expected in Seoul Next Year

The jeonse prices for "Raemian Onepera," which will begin move-in on the 26th, are declining due to the impact of loan regulations. This is because landlords must find tenants who can pay the deposit in cash without relying on jeonse loans, leading them to lower prices.

The entrance gate of the Raemian Onepera complex, where move-in begins on the 26th. Screenshot from the Raemian Onepera website

According to industry sources on the 21st, current jeonse listings for 59㎡ units at Raemian Onepera start at a minimum of 945 million won. On the 19th, a listing priced at 1.1 billion won was reduced to 1.05 billion won. On the 2nd, a listing that was 1.02 billion won dropped by about 20 million won. These prices are several hundred million won lower than those of newly built complexes in the area. According to the Ministry of Land, Infrastructure and Transport's actual transaction price system, a 59㎡ unit at "Bangbae Gran Xi," which began move-in in 2021, was contracted for 1.2 billion won on October 13.

Following the June 27 loan regulation, jeonse loans for properties before the transfer of ownership have been blocked, forcing tenants who need loans to look for listings without existing mortgages. An agent in Bangbae-dong explained, "Jeonse prices are lower than those of newly built apartments nearby," and added, "Jeonse loans can only be processed after the landlord has fully paid the balance, but there are not many listings that meet this condition." Brokerages in the area are marking Raemian Onepera units with "no mortgage" or "rare property eligible for loans" if the balance has been fully paid. For 59㎡ units, the market price for properties eligible for loans ranges from 1.07 billion won to over 1.2 billion won.

A panoramic view of the Raemian Onepera complex, scheduled for move-in on the 26th of this month. Screenshot from the Raemian Onepera website

The supply of move-in units is expected to decrease further next year, raising the possibility that jeonse prices may rise again. According to Real Estate R114, the number of apartment move-in units in Seoul is estimated at 36,830 this year and just 14,143 next year, which is less than half of this year's figure. Kim Hyosun, Chief Real Estate Specialist at NH Nonghyup Bank, said, "Jeonse prices for complexes before move-in can fluctuate significantly. However, as time passes, prices are likely to rise," adding, "It is common for prices to increase after urgent sales are cleared out."

Meanwhile, Seocho-gu, where Raemian Onepera is located, has seen fluctuations in the number of listings due to the large number of new move-ins. As of the 20th of this month, the number of jeonse listings increased by 2.1% from 4,791 on October 21 to 4,895. This contrasts with Gangbuk, where the number of jeonse listings plummeted following the October 15 policy announcement. According to the weekly jeonse price change rate announced by KB Real Estate, as of the 17th, jeonse prices in Seocho-gu rose by 0.15% compared to the previous week. This is lower than Songpa (0.41) and Gwangjin (0.39), but similar to the Seoul average (0.14).