Hanam City Ranks First Nationwide in Apartment Jeonse Price Increase... Surpassing Outer Seoul Autonomous Districts

[Asia Economy Reporter Choi Dong-hyun] Apartment jeonse prices in Hanam-si, Gyeonggi Province, have shown the highest increase rate nationwide over the past year.

On the 9th, according to an analysis by real estate information provider Economy Man Lab of KB Real Estate Live On's housing price trends, last month the average apartment jeonse price per 3.3㎡ in Hanam-si was 14.738 million KRW, up 30.88% from 11.261 million KRW in the same period last year. This is the highest increase rate among local governments nationwide during the same period. Just a year ago, the average apartment jeonse price in Hanam-si was lower than that of Seoul’s outer districts such as Eunpyeong-gu, Jungnang-gu, Gangbuk-gu, Nowon-gu, Geumcheon-gu, and Dobong-gu, but last month it surpassed the jeonse prices of these areas and is currently soaring.

This trend is also reflected in actual transaction prices. According to the Ministry of Land, Infrastructure and Transport’s actual transaction price system, the jeonse for an 84㎡ apartment (exclusive area) at ‘Misa Riverside Centriver’ located in Seondong, Hanam-si, was transacted at 360 million KRW (13th floor) in August last year, but last month it was traded at 665 million KRW (18th floor), marking an 84.7% increase over one year. The jeonse for a 101㎡ apartment at ‘Misa Riverside 2nd Prugio’ in the same area was around 340 million KRW (7th floor) in August last year, but last month it was contracted at 550 million KRW (6th floor), rising by 210 million KRW over one year. The 84㎡ apartment at ‘Misa Riverside House D The Lake’ located in Mangwol-dong was contracted at 380 million KRW (3rd floor) in August last year, but this August it was contracted at 600 million KRW (7th floor).

Until now, Hanam-si has been evaluated as having a pleasant residential environment due to abundant riverside parks along the Han River and neighborhood parks, but lacking in public transportation infrastructure. However, since the opening of Line 5 Hanam Line, accessibility to Seoul has greatly improved, and jeonse prices are soaring mainly around newly established stations.

Meanwhile, apartment jeonse and wolse (monthly rent) transaction volumes in Seoul and Gyeonggi Province have sharply declined. According to the Seoul Real Estate Information Plaza, last month the number of apartment jeonse and wolse transactions in Seoul was 8,064, the lowest monthly transaction volume since Seoul began compiling related statistics in 2011. Additionally, last month the number of apartment jeonse and wolse transactions in Gyeonggi Province was 11,038, the lowest monthly transaction volume since related statistics began. Considering that actual transaction reports must be submitted within 30 days after contract, a rapid recovery in transaction volume is unlikely.

Oh Dae-yeol, head of the research team at Economy Man Lab, said, "The rise in apartment jeonse prices in Hanam-si is due not only to transportation benefits but also to the shortage of jeonse listings caused by the Lease Protection Act and the lottery-like waiting demand for private land price ceiling system pre-sale subscriptions," adding, "The pressure on jeonse price increases will intensify mainly for newly built apartments.”

This content was produced with the assistance of AI translation services.