Jeonse prices in Yongin, Gyeonggi Province, have jumped sharply. In Cheoin-gu, Yongin, where a "semiconductor cluster" is being built, the weekly jeonse price growth rate is close to six times that of Seoul. With jeonse listings in short supply and renewals surging, jeonse prices appear to be rising due to a lack of available units. At some apartment complexes, the gap between sale prices and jeonse prices is not large.
According to KB Real Estate on the 27th, the nationwide jeonse price change rate for the fourth week of December 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, within Yongin, Cheoin-gu's jeonse price growth rate was 0.52%, nearly six times Seoul's rise. It was also 0.17 percentage points higher than Yangcheon-gu (0.35%), which had the highest jeonse price growth rate in Seoul. While the increase in absolute jeonse prices was larger in Seoul, the volatility in the rate of change was greater in Cheoin-gu.
Cheoin-gu, Yongin, is where the semiconductor cluster is being created. SK hynix will invest 120 trillion won to establish production facilities in the Yongin semiconductor cluster. Samsung Electronics also plans to invest 320 trillion won in the area to build an advanced system semiconductor cluster.
As corporations expand investment, jeonse demand is increasing, but listings are decreasing, pushing up jeonse prices. According to Hogangnono, an apartment closing-price application (app), Seohui Starhills Forest in Cheoin-gu has 1,872 households, yet aside from a single wolse listing, there are no jeonse listings at all. At Gorim Phase 2 Yangwoo Naeanae Edu First, which has 1,098 households, only one jeonse listing is posted.
In particular, the use of jeonse renewal rights is further reducing jeonse listings. According to the actual transaction price system of the Ministry of Land, Infrastructure and Transport (MOLIT), the renewal ratio among monthly rent and jeonse transaction cases in Cheoin-gu, Yongin, was 23.6% last month, up 12.9 percentage points from the same month a year earlier (10.7%). A head of a certified real estate agency in Cheoin-gu said, "The share of people exercising jeonse renewal rights has risen, so there aren't many jeonse units available by apartment complex," adding, "Jeonse has recently become scarce."
As jeonse prices rise, some apartment complexes are seeing only a small difference between jeonse prices and sale prices. According to the Korea Real Estate Board (REB), Cheoin-gu, Yongin, had a jeonse-to-sale price ratio (the ratio of jeonse prices to dwelling sale prices) of 68.1% last month, slightly higher than the nationwide ratio of 64.6%. However, some apartments reportedly exceed an 80% jeonse ratio. At one apartment complex in Cheoin-gu, a 108㎡ unit supplied last month changed hands for 270 million won, while in the same month, a jeonse contract for the same size was signed at 240 million won.
In Suji-gu, Yongin, the weekly jeonse price growth rate was also high at 0.40%. In Suji-gu, residents of remodeling complexes around Pungdeokcheon-dong are set to relocate, and jeonse prices are strong, particularly for small and mid-sized apartments favored by jeonse demand.
Led by Yongin, the upward trend in jeonse prices in places such as Jungwon-gu, Seongnam (0.30%), and Sujeong-gu, Seongnam (0.24%) continued, with the jeonse price growth rate for Gyeonggi apartments at 0.09%. It has risen for 47 consecutive weeks.