As Seoul jeonse prices surge, tenants are being pushed out to the Gyeonggi region. Key areas in Gyeonggi that border Seoul are seeing concentrated jeonse demand, and local jeonse prices are rising in tandem.
According to an analysis by KB Real Estate of KB Kookmin Bank's jeonse loan data on the 18th, 21.3% of Gyeonggi Province dwellings jeonse demand last year flowed in from other cities and provinces. Among them, Seoul residents accounted for the largest share at 65.5%. They were followed by Incheon (14.0%), South Chungcheong (3.3%), and Gangwon (3.0%).
In Seoul, many tenants who had lived on jeonse in districts such as Gwanak, Gangdong, Songpa, Gangseo, and Eunpyeong moved to Gyeonggi areas. The area that attracted the most jeonse demand from outside Seoul was Deogyang District in Goyang, followed by Gwangmyeong, Bundang District in Seongnam, Hanam, Namyangju, Gimpo, and Wonmi District in Bucheon.
Experts say the burden of soaring Seoul jeonse prices has spurred moves to Gyeonggi. As people look for relatively cheaper jeonse while maintaining access to life in Seoul, demand is shifting to Gyeonggi-adjacent areas with good subway accessibility.
A KB Real Estate official said, "Most areas that absorbed demand leaving Seoul are places like Goyang, Seongnam, Hanam, Gwangmyeong, and Namyangju that are connected to Seoul by subway," adding, "In the end, areas within commuting distance to Seoul are serving as alternative housing locations."
This trend has grown stronger this year. With Seoul jeonse and monthly rent prices rising steeply, more people are looking to move to the Gyeonggi region, where the price burden is relatively lighter.
According to a KB Real Estate survey, in the second week of May (as of the 11th) Seoul's apartment jeonse price index change rate was 0.26%, the highest weekly increase this year. Districts such as Gangbuk (0.76%), Gwangjin (0.59%), Nowon (0.53%), and Yongsan (0.50%) outpaced the Seoul average increase.
As jeonse demand pushed out of Seoul flows into Gyeonggi, jeonse prices in the province are also stirring. According to the real estate big data platform Asil, as of the 15th, Gyeonggi's jeonse and monthly rent listings totaled 21,002, down 52.9% from a year earlier. Fewer listings and rising demand are increasing upward pressure on prices.
In a KB Real Estate survey, the second week of May Gyeonggi jeonse price index change rate was 0.18%, up from the previous week's 0.11%. Jeonse prices rose sharply mainly in areas with good access to Seoul, including Gwangmyeong (0.62%), Dongtan District in Hwaseong (0.59%), Jangan District in Suwon (0.49%), and Paldal District in Suwon (0.36%).
Record-high jeonse filings are also surging. From January to April this year, Gyeonggi apartment jeonse record-high filings numbered 1,912, up 67.6% from the same period last year (1,141).
Kim Hyo-seon, KB Kookmin Bank's senior real estate expert, said, "As Seoul sale prices and jeonse and monthly rents rise simultaneously, more people are looking to move to relatively cheaper Gyeonggi areas," adding, "In particular, many cases involve Gangnam-area demand shifting to adjacent Gyeonggi areas, so the upward trend in jeonse prices in preferred locations is likely to continue."
Purchases of Gyeonggi dwellings by Seoul residents are also on the rise. According to the Court Registration Information Plaza, last month Seoul residents accounted for 15.69% of buyers of multiunit buildings (apartments, villas, and officetels) in Gyeonggi Province. That is the highest level in 3 years and 9 months since June 2022 (16.28%).