Gyeonggi Province enters the “₩1 billion jeonse” era ... Jeonse prices across the Seoul metropolitan area rise for 88 consecutive weeks

[Financial News] The upward trend in the Seoul metropolitan area’s jeonse market continues, increasing housing costs for non-homeowners seeking housing for their own use. As the “₩1 billion jeonse” era spreads beyond major areas of Seoul into Gyeonggi Province, attention is turning to reasonably priced new developments in unregulated areas that could help provide housing stability.
According to the Korea Real Estate Board (KREB) weekly apartment market report on the 5th, the apartment jeonse price index for the Seoul metropolitan area rose 0.17% from the previous week in the fourth week of October, marking 88 consecutive weeks of increases since the third week of February. Seoul apartment jeonse prices have continued to rise for 90 straight weeks, while more recently the rate of increase in Gyeonggi Province has outpaced Seoul’s. In the second week of October, apartment jeonse prices in Gyeonggi Province rose 0.19%, surpassing Seoul’s 0.18%; they have posted higher increases than Seoul for three consecutive weeks since then.
The shortage of jeonse listings and sharp price increases are spreading rapidly from Seoul’s outskirts throughout Gyeonggi Province. According to the Ministry of Land, Infrastructure and Transport (MOLIT) real transaction price system, an exclusive 84-square-meter unit at Mapo Prestige Xi in Yeomni-dong, Mapo District, set a new record when it was leased on a jeonse deposit of 1.4 billion won in July. An exclusive 84-square-meter unit at DMC Art Fore Xi in Susaek-dong, Eunpyeong District, also went for 1.169 billion won, topping 1 billion won. In Gyeonggi Province, an exclusive 84-square-meter unit at Cheolsan Station LOTTE Castle & SK View in Cheolsan-dong, Gwangmyeong-si, joined the 1 billion-won club with a jeonse deal worth 1.01 billion won in June. An exclusive 84-square-meter unit at Dasan Xi Ivy Place in Dasan-dong, Namyangju-si, also traded for 850 million won, bringing the nine-hundred-million-won jeonse era within reach even in northern Gyeonggi Province.
The main reasons cited for the continued sharp rise in jeonse prices across the Seoul metropolitan area are an acute shortage of new apartment move-ins and a dearth of available listings. With fewer units coming onto the market, more tenants have exercised their right to request contract renewals, sharply reducing existing listings. The designation of all of Seoul and 15 areas in Gyeonggi Province as land transaction permit zones has also imposed a two-year actual-residence requirement, causing jeonse units that might otherwise have entered the market to disappear.
Meanwhile, a large number of promising new developments are awaiting launch in the second half of the year, in prime locations and unregulated areas of Gyeonggi Province, drawing strong interest from non-homeowners seeking housing for their own use.
The Sharp Ilsan Centro, which POSCO E&C is building in Pung-dong, Ilsandong District, Goyang, Gyeonggi Province, is drawing attention ahead of its scheduled launch in November. The development will comprise seven buildings, with two basement levels and 29 floors above ground, and a total of 526 homes, all with an exclusive area of 84 square meters. Along with previously launched developments, it will cap a large-scale, 4,592-home The Sharp brand community. In a first for POSCO E&C, the development introduces the “The Sharp Membership 10” program, which freezes rental deposits for 10 years and gives residents priority to convert to ownership at a fixed sale price, maximizing housing stability. Pungsan and Baekma stations on the Gyeongui–Jungang Line are within walking distance, and transfers at Daegok station make it easy to access GTX-A and Seoul Subway Line 3.
Yangwoo Construction plans to launch general sales in November for 414 apartment units at Uijeongbu Station Feliz Tower Yangwoo Naeanae, a 1,506-unit development in Uijeongbu-dong, Uijeongbu-si, Gyeonggi Province, an unregulated area. The development is right next to Uijeongbu station, served by Seoul Subway Line 1, the light rail and the Gyooe Line, and is also expected to benefit from the future opening of GTX-C. LOTTE Engineering & Construction Co., Ltd. plans to sell 1,249 homes at Gyeonggi Gwangju Station LOTTE Castle Signature, Complex 2, being built in Ssangnyeong-dong, Gwangju-si, Gyeonggi Province, under a special private-park development project. GS E&C plans to sell 1,354 homes at Armuze Xi in Seongpo-dong, Sangnok District, Ansan-si, in November. Both developments are expected to benefit from expanded regional transport networks, including the Sinansan Line and GTX-C.

[email protected] Jeon Min-gyeong Reporter