2024-04-30 07:49:26
Apartment rental prices in Seoul rise for 49 consecutive weeks
High interest rates and increased uncertainty about house prices… A wait-and-see attitude is evident
The rental price of apartments in Seoul continues to soar, recording an upward trend for 49 consecutive weeks. In fact, it has been on an upward trend for nearly a year.
The Seoul apartment weekly rent price index has recorded an upward trend for 49 consecutive weeks since the fourth week of May last year. This year, it rose 1% through the third week of this month. Seongdong-gu rose the most, rising 2.28%, while Eunpyeong-gu (1.9%) and Nowon-gu (1.86%) also showed clear increases.
In fact, the rent price increase in some apartment complexes in Seoul is unusual.
According to the Ministry of Land, Infrastructure and Transport’s actual transaction price disclosure system, a lease contract for Gongdeok SK Leaders View (84㎡ exclusive area) in Gongdeok-dong, Mapo-gu, Seoul was signed on the 4th for 1.15 billion won. Compared to December last year (1.025 billion won), it increased by 125 million won. In addition, a contract for Hongje Hanyang (84㎡ exclusive area) in Hongje-dong, Seodaemun-gu was signed for 540 million won on the 16th. Compared to last December when it was traded at 380 million won, it rose by 160 million won in just 4 months. In addition, Cheonggu 3 (exclusive 84㎡) in Junggye-dong, Nowon-gu recently signed a lease contract for 760 million won, a 60 million won increase compared to the transaction in January (700 million won).
As jeonse prices continue to rise, the number of existing tenants requesting renewal of their contracts is increasing, aggravating the jeonse crisis. As rental prices for apartments in Seoul continue to rise, the proportion of existing tenants renewing contracts for their current homes rather than moving to new homes has increased by more than 30%.
According to Real Estate R114’s analysis of actual transaction price data from the Ministry of Land, Infrastructure and Transport, 35% (12,604 cases) of the 36,247 lease contracts for apartments in Seoul reported as of the 17th of this year were renewal contracts. Last year, the proportion of renewal contracts among apartment rental contracts in Seoul increased by 8 percentage points compared to 27%. On a monthly basis, last year’s renewal contract rate was below 30% at 25-29% every month, but this year, it exceeded 30%, including 31% in January, 39% in February, 35% in March, and 36% in April. As rental prices rise and the number of properties for sale decreases, the number of tenants living in existing homes has increased.
The actual number of rental properties decreased by nearly 30% compared to last year. According to Asil, a real estate big data company, as of the 23rd, the number of leased apartments in Seoul was 30,062, a 27.6% decrease compared to last year (41,515).
In the real estate market, it is predicted that the upward trend in rental prices will continue for the time being. This is because not a single household is scheduled to move into an apartment in Seoul next month. According to real estate platform company Zigbang, the total number of apartments occupied in May was 22,605, which is 67% (9,044 households) more than the previous month (13,561 households).
However, in Seoul, there is no move-in volume at all next month. It has been five months since December last year that there was not a single new household in Seoul. The number of apartments in Seoul this year is 24,139, a 21% decrease from the previous year (30,570 households). In particular, the number of move-ins is expected to remain low until November, when Gangdong-gu‘s ‘Olympic Park Foreon (Dunchon Jugong Reconstruction)’ begins to move in. In June, there were 1,965 households in 4 complexes, in July, there were 1,869 households in 5 complexes, and in August, there were 1,201 households in 2 complexes. Excluding Olympic Park Foreon, a large complex with about 12,000 households, the number of apartments moving into Seoul this year is at an all-time low.
Experts predict that the increase in rent prices in the Seoul area will continue for the time being due to a decrease in the number of tenants moving in.
Ham Young-jin, head of Woori Bank’s Real Estate Research Lab, said, “As high interest rates prolong and uncertainty in the market increases, demand for renting rather than purchasing a home increases, which is acting as a factor in increasing jeonse prices.” He added, “The number of new residents this year has decreased, and demand for jeonse during the spring moving season has increased, etc. “As a result, there will be a clear increase in rental prices in some complexes,” he explained.
[서울=뉴시스]
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2024-04-30 07:49:26