Jeonse prices in Yongin, Gyeonggi Province, posted a sharp rise. The weekly increase rate of jeonse prices in Cheoin District of Yongin, where a "semiconductor cluster" is being built, is close to six times that of Seoul. With jeonse listings scarce and renewals jumping sharply, it appears the shortage of listings is pushing up jeonse prices. At some apartment complexes, the gap between sale prices and jeonse prices is narrow.
According to KB Real Estate on the 27th, the nationwide jeonse price change rate in the 4th week of Dec. was 0.09%. Yongin's weekly jeonse price change rate was 0.29%, 0.2 percentage points higher than Seoul's 0.09%. In particular, even within Yongin, Cheoin District's jeonse price increase rate was 0.52%, nearly six times that of Seoul. It was also 0.17 percentage points higher than Yangcheon District (0.35%), which posted the highest jeonse price increase rate in Seoul. While the absolute increase in jeonse prices was larger in Seoul, the volatility in the rate of change was greater in Cheoin District.
Cheoin District in Yongin is the site of a semiconductor cluster. SK hynix will invest 120 trillion won to establish production facilities within the Yongin semiconductor cluster. Samsung Electronics also plans to invest 320 trillion won in the area to create an advanced system semiconductor cluster.
As corporations expand investment, jeonse demand is rising while listings shrink, pushing up jeonse prices. According to Hogangnono, an apartment transaction app, Seohui Starhills Forest in Cheoin District has 1,872 households, but aside from a single monthly rental listing, there are no jeonse listings at all. At Gorim 2-cha Yangwoo Naeanae Edu First, which has 1,098 households, only one jeonse listing is posted.
In particular, as more tenants exercise the jeonse renewal right, jeonse listings are dwindling further. According to the actual transaction price system of the Ministry of Land, Infrastructure and Transport (MOLIT), the renewal share among monthly rent and jeonse transactions in Cheoin District, Yongin, was 23.6% last month, up 12.9 percentage points from the same month a year earlier (10.7%). The head of a real estate agency in Cheoin District said, "The rate of using the jeonse renewal right has increased, so there are not many jeonse listings by apartment complex," and noted, "jeonse has recently become scarce."
As jeonse prices climb, some apartment complexes are seeing only a small gap between jeonse prices and sale prices. According to the Korea Real Estate Board (REB), the jeonse-to-sale price ratio in Cheoin District, Yongin, was 68.1% last month, slightly higher than the nationwide ratio of 64.6%. However, some apartments showed ratios exceeding 80%. At one complex in Cheoin District, a 108㎡ unit supplied last month was traded at 270 million won, while a jeonse contract for the same-sized unit in the same month was signed at 240 million won.
In Suji District, Yongin, the weekly jeonse price increase rate was also high at 0.40%. In Suji District, residents of a remodeling complex in the Pungdeokcheon-dong area are preparing to relocate, and jeonse prices are strong, especially for small and mid-sized apartments preferred by jeonse demand.
Led by Yongin, the upward trend in jeonse prices continued in areas such as Jungwon District, Seongnam (0.30%), and Sujeong District, Seongnam (0.24%), pushing the jeonse price increase rate for Gyeonggi apartments to 0.09%. It has risen for 47 consecutive weeks.