Bundang Hansol Village Complex 5 Begins Relocation of 1,100 Households... "Jeonse Will Rise"

Four-Month Relocation from March to July
The Move of 1,156 Households Puts Jeonse and Rental Market on Alert

As the Hansol Village Complex 5 in Jeongja-dong, Bundang-gu, Seongnam, Gyeonggi Province begins its full-scale relocation process, the surrounding jeonse and monthly rental market is heating up. With relocation demand for around 1,000 households expected just from Hansol Village Complex 5, and overlapping relocation demand for remodeling from Suji-gu in Yongin, which shares the same living area, forecasts suggest that jeonse prices could rise by as much as 50 million won in a short period of time.

Perspective rendering of The Sharp Bundang Tier One.

According to the Hansol Village Complex 5 remodeling housing association on the 4th, the association issued a relocation commencement notice to association members and tenants on January 30. From February 19 to 28, it will accept relocation plans, process trust registrations, and receive applications for relocation loans. The actual relocation period will run for four months, from March 20 to July 20. Through remodeling, Hansol Village Complex 5 will be transformed from the existing 12 buildings with 1,156 households into 16 buildings with 1,271 households, increasing the number of units by 115.

Once the relocation notice was announced, the nearby jeonse and monthly rental market reacted immediately. Jeongja-dong is an area where jeonse accounts for a higher share than monthly rent, with about 70% of all rental listings consisting of jeonse contracts. Hansol Village Complex 5 is also known to have more than 70% of its residents living on jeonse contracts. As remodeling projects are gaining momentum in nearby Suji-gu, Yongin, there is a high possibility that additional relocation demand will flow into the area. In practice, remodeling is underway at complexes such as Bowon Apartment in Pungdeokcheon-dong, Suji-gu, Yongin, which is said to be stimulating jeonse demand in the Jeongja-dong area.

Within Bundang, Jeongja-dong is considered a neighborhood with well-established school districts and living infrastructure, and is therefore highly favored by newlyweds and households with school-age children. Analysts say that, on top of relocation demand, overlapping demand from genuine end-users seeking new jeonse contracts could further intensify upward pressure on jeonse prices.

Local licensed real estate agents expect that jeonse deposits could rise by up to around 50 million won in a short span of time. In fact, when Neuti Village Complexes 3 and 4 issued their relocation notices for remodeling in 2023, demand to move into nearby complexes surged all at once, quickly depleting available jeonse listings. At that time, jeonse prices for some unit types jumped by around 100 million won.

One licensed real estate agent said, "This area is not the kind of place where jeonse prices are pushed up sharply, but there is a fundamental shortage of listings," adding, "When demand concentrates, prices inevitably get pushed up naturally."

In particular, there is a trend where listings for small to mid-sized units in the 20-pyeong and 30-pyeong range are snapped up quickly as soon as they come on the market. For example, a jeonse listing for a three-bedroom, 84-square-meter (32-pyeong) exclusive-use unit at Cheonggu Apartment in Hansol Village Complex 1 in Jeongja-dong recently had its jeonse deposit raised from 670 million won to 700 million won on January 26. Likewise, the jeonse price for a two-bedroom, 35-square-meter (10-pyeong) exclusive-use unit at Jugong Apartment in Hansol Village Complex 4 increased by about 20 million won, from 300 million won to 320 million won, on February 3.

Another official at a nearby real estate agency said, "Since the relocation notice was issued, inquiry calls have been coming in continuously," adding, "Given that demand far exceeds supply, it is highly likely that the upward trend in the jeonse market will continue once relocation begins in earnest."

Bundang-gu was developed in the 1990s as a first-phase new town, and remodeling projects have been actively promoted due to the aging of complexes and high floor area ratios. Neuti Village Complexes 3 and 4 and Mujigae Village Complex 4, where relocation began earlier than at Hansol Village Complex 5, are scheduled for move-in next year. Mujigae Village Complex 4, branded as "The Sharp Bundang Centro," completed its subscription process early this year, and Neuti Village Complex 3, branded as "The Sharp Bundang Tier One," has also finished sales. Neuti Village Complex 4, branded as "The Sharp Bundang Highest," is scheduled to begin sales in March.