In some apartment complexes in Seoul, the gap between jeonse prices and sale prices has narrowed to around 100 million won. Most of these are 'single household complexes' with fewer than 300 households. Among these apartments are relatively new buildings with good living environments, as well as mixed-use complexes. However, there are analyses suggesting that the possibility of future price increases is low, meaning these places mostly lack investment value and sales transactions occur infrequently.
According to actual transaction data from the Ministry of Land, Infrastructure and Transport on the 27th, the apartment complex with the smallest gap between jeonse and sale prices among Seoul's apartments (based on specifications of 20 pyeong and below) is 'Eunpyeong New Town Elcru' in Jin-gwan-dong, Eunpyeong-gu. Completed in 2017, it is a small-scale complex with 146 households. In January, an exclusive area of 59.98㎡ was sold for 700 million won. The highest jeonse price for the same area was 550 million won, which results in a gap of 150 million won. The jeonse rate (the ratio of jeonse price to sale price) is 78.5%.
Located near Gupabal Station on Subway Line 3, this complex is a mixed-use type. However, it has the drawback of having a small number of households. 'Eunpyeong Seohae Grandble' in the same district of Gusan-dong is also a place with a high jeonse rate. A 146-household complex completed in 2022, an exclusive area of 59.21㎡ was sold for 600 million won earlier last month, while the jeonse price is 420 million won. It is an apartment near Gusan Station on Subway Line 6.
In Eunpyeong-gu, the 'Arwium Mixed-Use Complex' with an exclusive area of 49.76㎡ was sold for 670 million won in mid-last month. The jeonse price is 480 million won, which is 190 million won lower than the sale price. 'Shin Magok Blooming' in Gangseo-gu (completed in 2020, 298 households) and 'Ssyangyong The Platinum Yongmasan' in Jungnang-gu (completed in 2020, 245 households) also show a difference of between 210 million and 250 million won between sale and jeonse prices.
Most of the complexes with small differences between jeonse and sale prices have fewer than 1,000 households and are relatively recently built apartments. Many mixed-use apartments are also included. Although the living environment is good, leading to high jeonse prices, analyses suggest that the possibility of future price increases is low, indicating that the sale prices in these areas are stagnant.
Park Hapsu, an adjunct professor at Konkuk University's Graduate School of Real Estate, noted, "Although the investment value isn't high enough to justify a purchase, apartments in areas with high residential demand generally have high jeonse rates." Yoon Ji-hae, Head of Team at Real Estate R114, explained, "Single household apartments rarely have sales, resulting in stagnant sale prices for several years, but jeonse contracts continue to be made, so jeonse prices often rise based on market conditions," and added, "This often results in high jeonse rates." Yoon also pointed out, "However, if you actually try to purchase apartments in these complexes, there are often no listings or listings that demand prices much higher than past sale prices, which is something potential buyers need to consider."
Meanwhile, in some complexes, the rise in jeonse prices leads to an increase in sale prices. The exclusive area of 84.96㎡ at 'Gwangjang Hill State' in Gwangjin-gu has seen significant increases in sale prices since the second half of last year. It was traded for 1.94 billion won in early July, but broke the 2 billion won mark at 2.05 billion won in the same month, and was transferred for 2.12 billion won in December of last year. The jeonse price, which was in the 1.1 billion won range last year's second half, also rose to 1.25 billion won by December. Park Won-gap, a senior real estate expert at KB Kookmin Bank, stated, "Although the differences vary slightly by price range, jeonse prices and sale prices often move together in the larger scheme," adding, "There are often phenomena where jeonse prices pull up sale prices or vice versa."