Apartment jeonse rents in Nowon-gu rose 12.25% cumulatively this year through the second week of September.
At Geonyeong 3-cha in Junggye-dong, completed in 1995, an 84㎡ unit signed a jeonse contract for 9억1000만원.
A single high contract price does not necessarily represent the overall jeonse level across the area.
3-Line Summary
1. Nowon-gu’s cumulative jeonse rents rose 12.25%.
2. An 84㎡ unit at Geonyeong 3-cha traded for 9억1000만원.
3. It is difficult to regard one record-high transaction as the area average.
The Second-Highest Increase Among Seoul’s Autonomous Districts
According to an Asia Economy report citing Korea Real Estate Board statistics, Nowon-gu’s cumulative apartment jeonse rent increase for the year through the second week of September was 12.25%. This was more than 4%p higher than the Seoul average of 7.79%, ranking second among Seoul’s 25 autonomous districts after Seongbuk-gu at 12.84%.
Compared with the previous peak cited in the article, Nowon-gu’s increase in 2015 was 10.77%. This year’s figure had already exceeded that level by 1.48%p as of mid-September. KB Kookmin Bank’s monthly apartment jeonse price index also showed that Nowon-gu rose 11.63% from January through August.
However, this figure is an indicator showing changes in apartment jeonse rents. It does not mean that the contract terms for an individual complex or a specific unit size are the same as the jeonse deposits paid by all tenants in Nowon-gu.
The 9억1000만원 Contract at Geonyeong 3-cha, Completed in 1995
The ninth-floor 84㎡ unit at Geonyeong 3-cha in Junggye-dong was reported to have signed a new jeonse contract for 9억1000만원 on September 11. Based on the article, this was the highest jeonse price for an 84㎡ unit in Nowon-gu. Compared with the January contract for the same unit size and floor, the deposit was 2억3000만원 higher.
Geonyeong 3-cha is a complex completed in 1995. The article reported that this contract price was higher than the 8억7000만원 at Forena Nowon, completed in 2020, and the 8억5000만원 at Nowon Lotte Castle Signature, completed in 2023. It is a case that makes it difficult to conclude that jeonse deposits are low simply because a complex is old.
That does not mean, however, that the highest price at Geonyeong 3-cha should be read as indicating that all older apartment complexes have become more expensive than newly built ones. The price is the highest actual transaction price for an individual complex and an 84㎡ unit, based on the Ministry of Land, Infrastructure and Transport’s actual transaction price system, so the contract date, floor, and unit size must be considered together.
Fewer Jeonse Listings and Stronger Demand Indicators
An Asia Economy report citing data from real estate big-data company Asil said that apartment jeonse listings in Nowon-gu had fallen 51.5% from a year earlier. Seoul’s total jeonse listings also declined from 2만3390건 to 2만298건.
Last month, the 수도권 jeonse supply-demand index was 180.1. When this index exceeds 100, it is interpreted as meaning that demand is greater than supply. The article analyzed that the expansion of land transaction permit zones, tax reforms, the accumulated use of the right to request contract renewals, and lending regulations had jointly contributed to the decline in new jeonse listings.
The government mentioned the need to expand housing supply, while also noting that it typically takes around 3 years from groundbreaking to occupancy. For those looking into jeonse in Nowon-gu, it is more important to check separately not only the area’s average increase rate but also the actual contract prices and the number of listings available in the complex they are seeking.
References
- Asia Economy, “Startled While Looking for Jeonse”… 900 Million Won for a 30-Year-Old Apartment in Nowon
- Maeil Business Newspaper·Daum, If You Want to Buy a Home, Within This Year … Promising Hangang Belt, Existing Homes Rather Than Subscriptions
Tags #Nowon-gu #Nowon-guJeonse #Nowon-guApartments #NowonJeonseRents #SeoulJeonse #JeonsePrices #JeonseListings #Junggye-dongGeonyeong3-cha #ActualJeonseTransactions #ApartmentJeonse #SeoulApartments #JeonseSupplyDemandIndex