In Daegu, where the number of new apartments has risen dramatically, the drop in rental price is increasing as the reverse jeonse and monthly rent crisis intensifies. Although the rental price of a new three-bedroom, two-bathroom apartment in the city center has dropped to the level of a one-room apartment in Hwagok-dong, Seoul, it is difficult to find a tenant.
According to the real estate brokerage industry on the 25th, in Daegu, as a total of 34,984 households moved into apartments this year, jeonse and monthly rental prices are plummeting. With the largest number of units in the past, surpassing the previous record in 2008 (34,688 households), the reverse monthly rent crisis is expected to become more serious.
In Pyeongni-dong, Seo-gu, Daegu, Seodaegu KTX Yeongmuye Daum exclusive area, with 1,418 households scheduled to move in in March, the monthly rental price has plunged to 500,000 won per month with a deposit of 20 million won, and up to 110 million to jeonse. It is a three bedroom flat with well equipped surrounding infrastructure as it is an urban redevelopment complex. Compared to the similar size of apartments in the vicinity, such as Pyeongli Prugio, rent for 230 million won in November last year, it is at the level of half. A nearby T certified official said, “It’s hard to find a tenant even though the rental prices and the monthly rent have dropped to a level where it’s hard to drop any more.”
Trading is not going well either. The unique 84㎡ is for sale at a minus premium which is 70 million won below the pre-sale price.
The reverse monthly rent crisis is appearing all over Daegu. According to Asil, a real estate information company, the number of rental and monthly rental properties in Daegu, which was 15,650 at the end of September last year, increased by 21.6%, accumulating 19,033 cases as of today. The redevelopment complex ‘Cheongna Hills Xi’ (a total of 947 households) in Namsan-dong, Jung-gu, which will be moved in the next month, also sees the rental price of 59㎡ for exclusive use drops to 200 million won. The actual market price of the neighboring jeonse, such as Namsan Zai Haneulchae, who moved in last year, is about 280 million won. This complex is located in the station area of Bangogae Station on Subway Line 1, and recorded an average subscription competition rate of 141 to 1 at the time of its sale in 2020. Even when supplying supplies to ineligible winners, users flocked to them, saying that a premium of 100 million won was guaranteed. However, the negative premium now reaches 100 million won.
From the second half of the year, unpopular complexes that were not popular at the time of sale will start to move in one after the other. ‘Yonggye Station Prugio Arbetz’ (1313 households), which is due to move in in October from Dong-gu, recorded a 0.62 to 1 competition rate for first order subscriptions at the time of the pre-sale in 2021, and it’ n remains an unsold complex to this day. There are concerns that it will not be easy to find a tenant as it is located in a fringe housing development area.
Reporter Hyunil Lee [email protected]