As Jeonse Prices Rise, "Might as Well Buy My Own Home"... 'Pyeongtaek Godeok Woomirin The Premier' Draws Attention

- Apartment jeonse prices in Gyeonggi rose 5.68% this year... Listings fell 37% in a year
- Home sales rose 33% in Gyeonggi cities and counties where jeonse-to-home price ratios exceed 60%... Interest grows in new developments

[Home Sales Rise in Areas with High Jeonse-to-Home-Price Ratios]

Homebuyers in the Seoul metropolitan area who had been seeking jeonse rentals are turning to the sales market. Jeonse prices, which began rising in Seoul, have continued to climb into Gyeonggi Province, while the number of jeonse listings has also fallen, making it harder to find a rental home that meets their needs. Sales transactions are increasing particularly in areas with high jeonse-to-home price ratios.

According to the Korea Real Estate Board's September National Housing Price Trend Survey, apartment jeonse prices in the Seoul metropolitan area rose 0.71% from the previous month. By region, Seoul recorded the largest increase at 0.80%, followed by Gyeonggi Province and Incheon, both at 0.67%. Gyeonggi Province's cumulative increase from January through September this year was 5.68%, about nine times the 0.64% rise over the same period last year. Increases were particularly pronounced in southern Gyeonggi, including Gwangmyeong (1.49%), Yeongtong-gu in Suwon (1.46%), and Uiwang (1.39%).

Prices have continued to rise during the autumn moving season. The Korea Real Estate Board's weekly apartment price trends show that apartment jeonse prices in Gyeonggi Province rose 0.18% in the fourth week of October from the previous week. Jeonse listings have also fallen noticeably. According to Asil, a real estate big data platform, there were 12,992 jeonse listings in Gyeonggi Province as of October 29, down 37.1% from 20,647 a year earlier.

The market expects jeonse prices to keep rising for the time being. According to KB Real Estate, the KB Jeonse Price Outlook Index for the Seoul metropolitan area stood at 127.7 in October, well above the baseline of 100. The KB Jeonse Supply-Demand Index for the region, measured on a scale of 0 to 200 with readings above 100 indicating a supply shortage, also reached 179.5.

The rise in home sales is more pronounced in areas with high jeonse-to-home price ratios. According to data from Real Estate R114, the apartment jeonse-to-home price ratio in Gyeonggi Province was 59.4% in September, with 23 of the province's 31 cities and counties exceeding 60%. Ministry of Land, Infrastructure and Transport transaction data show that apartment sales in those 23 cities and counties totaled 76,081 from January through September this year, up 33.3% from 57,063 over the same period last year. That was higher than the 20.9% increase in the eight cities and counties where the ratio was below 60%.

People who previously prioritized jeonse rentals are now also considering buying homes as they compare rental contract terms with the costs of purchasing a home.

As a result, attention is turning to new apartment complexes scheduled for sale in areas where the jeonse-to-home price ratio exceeds 60%.

In Pyeongtaek, Gyeonggi Province, a consortium led by Woomi Construction plans to begin sales in November for Pyeongtaek Godeok Woomirin The Premier, located in the Godeok International New Town district of Godeok-dong. As of September this year, Pyeongtaek's apartment jeonse-to-home price ratio was 64.8%, and apartment jeonse prices rose every month from January through September.

Pyeongtaek Godeok Woomirin The Premier will comprise eight buildings, with two basement levels and up to 23 floors above ground, and 623 units with exclusive areas of 84, 94, 101, and 111 square meters. As a follow-up complex to Pyeongtaek Godeok Woomirin Prestige, which has sold out, the two developments are expected to form a Woomirin-branded residential complex with a total of 1,366 units once both are completed. Godeok 8 Elementary School (tentative name) is scheduled to open west of the complex in September 2028, while Godeok 6 Middle School (tentative name) is set to open in March 2029.

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