Jeonse listings are shrinking quickly in key areas of Gyeonggi Province. In the past month, half of the 20 cities, counties and districts nationwide with the biggest declines in jeonse listings were concentrated in Gyeonggi. In some complexes, jeonse deposits hit new record highs, and in Pyeongtaek there was even a case where a jeonse price rose by nearly 100 million won in four months. Analysts said the jeonse market is tightening fast as demand for jeonse in Gyeonggi increases with rising home and rent prices in Seoul, while move-ins of new apartment buildings are decreasing.
According to the real estate information platform Budongsanjiin on June 7, from Apr. 21 to May 21, 10 of the top 20 regions with the largest decreases in jeonse listings among the nation's 229 cities, counties and districts were in Gyeonggi Province.
In this period, Pyeongtaek in Gyeonggi saw 203 fewer jeonse listings. It had the third-largest decline nationwide after Songpa District in Seoul (-662) and Buk District in Gwangju Metropolitan City (-274). Gwangju in Gyeonggi (-200), Ilsandong District in Goyang (-198), Deogyang District in Goyang (-171), Bundang District in Seongnam (-145), Dongtan District in Hwaseong (-127), Paju (-102) and Gwangmyeong (-101) also each lost more than 100 jeonse listings in a month. Dongan District in Anyang (-83) and Wonmi District in Bucheon also declined.
Jeonse prices are also rising. For 84.54 square meters of exclusive space at Pyeongtaek Central Xi Complex 2 in Dongsak-dong, Pyeongtaek, Gyeonggi, a jeonse contract was signed on May 7 for 362 million won. The same size in the complex saw a transaction on Jan. 3 this year at 270 million won. The jeonse deposit rose by 98 million won in four months.
An 84.51-square-meter unit at Pangyo Wonmaeul Complex 3 in Pangyo-dong, Bundang District, Seongnam; a 49.61-square-meter unit at Cheolsan Rivervill Jugong in Cheolsan-dong, Gwangmyeong; and an 84.7-square-meter unit at Dongtan Station Lotte Castle in Yeoul-dong, Dongtan District, Hwaseong also set new record highs as jeonse contracts were signed last month at prices 18 million to 40 million won higher than the previous transaction.
According to the Korea Real Estate Board (REB), jeonse prices for apartments in Gyeonggi Province rose an average of 2.62% through the fourth week of May this year. That is more than 10 times the 0.26% increase during the same period last year.
Experts cite a shortage of new apartment supply as a key reason for the decline in jeonse listings. According to Real Estate R114, 26,394 new apartments in Gyeonggi Province were ready for move-in from January to May this year, down 14.1% (4,356 units) from 30,750 units in the same period last year.
Kim Hyo-seon, senior real estate specialist at KB Kookmin Bank, said, "For jeonse supply to increase, there needs to be a steady stream of move-ins at large new complexes, but in Gyeonggi Province right now, such supply is not sufficient."
Ko Jong-wan, head of the Korea Asset Management Research Institute, also said, "In particular, in southern Gyeonggi, where corporations are concentrated, new move-in supply is decreasing relative to demand, worsening the jeonse crunch."