As jeonse demand concentrates in school districts and areas near subway stations with excellent living conditions, jeonse prices have risen faster than sale prices in the Seoul apartment market.
According to the nationwide weekly apartment price trends for the 5th week of June (as of June 29) that Korea Real Estate Board (REB) released on the 2nd, Seoul's cumulative jeonse increase this year reached 5.10%, essentially matching the sales increase (5.11%). In particular, tenants continue to move into neighborhoods that are good to live in, with schools nearby or convenient access to subway stations.
North of the Han River, Seongbuk District (0.48%) recorded the highest increase, led by large complexes around Gilum-dong and Jeongneung-dong. Dobong District (0.47%) and Seongdong District (0.46%) followed. South of the Han River, Geumcheon District (0.42%) and Gangdong District (0.42%) saw steep rises, and Songpa District (0.39%) also lifted overall gains as lease contracts were signed at high prices in major apartment complexes in Jamsil and Sincheon-dong.
The nationwide weekly apartment jeonse price maintained its rise from a week earlier, and jeonse prices also picked up in the provinces (0.03%), where the sales market had been sluggish, as well as in the greater Seoul area (0.19%) and Seoul (0.30%). By city and province, Gyeonggi (0.15%), Incheon (0.12%) and Ulsan (0.11%) rose, while Jeju fell 0.03%. The number of cities, counties and districts with rising jeonse prices was 146, up by one from the previous week.
In Gyeonggi Province, Jungwon District in Seongnam (0.55%) jumped the most due to a shortage of small and mid-sized listings, and demand for jeonse also concentrated in large complexes in Dongtan District in Hwaseong (0.42%) and Gwangmyeong (0.41%). By contrast, Icheon (-0.20%) saw jeonse prices fall as landlords failed to find tenants, mainly for older apartments. In the provinces, Sejong (0.10%) rose, led by small and mid-sized apartments in Dodam-dong and Areum-dong, and in North Jeolla (0.06%), Deokjin District in Jeonju and Namwon were strong.
Although the increase is somewhat more moderate than jeonse prices, the sales market also remains firm, centered on large complexes and areas with redevelopment catalysts. Seoul apartment sale prices rose 0.27% this week as transactions at higher prices continued amid steady buyer inquiries.
In the Gangbuk area, Dobong District (0.37%) rose sharply, led by large apartment complexes in Chang-dong and Ssangmun-dong, and Dongdaemun District (0.36%) and Seongbuk District (0.36%) were also strong, focused on small and mid-sized units and major complexes. South of the Han River, Guro District (0.35%) climbed mainly in apartments near subway stations, and Songpa District (0.32%) posted a large gain on expectations for redevelopment.
Including Seoul, the greater Seoul area recorded a strong 0.20% rise, while the provinces were flat with no change. Gyeonggi Province also showed a firm increase of 0.19%, and Incheon rose 0.04%. Dongtan District in Hwaseong (1.46%), Sujeong District in Seongnam (0.43%) and Yeongtong District in Suwon (0.41%) were among the strong performers.
By contrast, the five major metropolitan cities in the provinces fell 0.01%, while Sejong and the remaining eight provincial regions stayed flat. Of the 181 cities, counties and districts in those surveyed, the number of areas with rising prices increased from 103 last week to 105 this week, and the number of areas with declines fell from 68 to 65.