Newsis data picture
As the jeonse price drops precipitously, the ‘reverse jeonse crisis’ is becoming more and more apparent. Even the 8th school district in Gangnam, which received special benefits due to a good educational environment such as academies after the CSAT every year and the demand to move to a school district, is experiencing a deepening decline in the charter market.
Even in Gangnam, which was like a fortress due to successive interest rate hikes, hundreds of chartered properties are being piled up, and the rent price is gradually falling.
The rental price of apartments in the metropolitan area continues to decline. According to the Korea Real Estate Agency’s national housing price trend survey, the rental price of apartments in the metropolitan area in September decreased by 1.03% compared to the previous month. This is the biggest decrease since January 2009 (-1.92%). Compared to the previous month, Seoul decreased by 0.75%, Gyeonggi and Incheon by 1.15% and 1.34%, respectively.
An official from the Korea Real Estate Agency said, “Due to the effect of the conversion of monthly rents and renewal contracts due to the increase in the interest rate, the demand for new jeonse is falling and the selling price continues to fall.” The extent of the decline spread as it fell mainly in Yeonsu and Jung-gu, where it is
Jeonse sales are increasing rapidly. According to Asil, a real estate big data company, as of the 21st, the number of apartments for sale in Seoul was 51,478, an increase of 11.9% from the previous month (45,990). Gyeonggi also increased by 8.3% to 67,429 cases, and Incheon to 15,131 cases by 9.3%.
The downward trend of jeonse prices is steep. According to the actual transaction price system of the Ministry of Land, Infrastructure and Transport, Daechi-dong ‘Eunma Apartment (unique area 84㎡)’ signed a global contract on the 6th for 860 million won. Currently, the market price of chartered property from the same area has fallen by 200 million to gain 640 million. In addition, Banpo-dong ‘Banpo Xi (unique area 84㎡) signed a charter contract on the 9th for 1,237.5 million won. Compared to 2.2 billion won reported in June, it fell by almost 1 billion won in just five months.
It is analyzed that the demand for jeonse plummeted as the interest burden on jeonse loans increased in a situation where interest rates increased. After the CSAT, the ‘SAT special’ disappeared and burst into the Gangnam real estate market.
In fact, the interest rate of a bank charter loan is approaching the level of 8%. The COFIX (funding cost index), which is the standard for calculating the bank’s floating rate interest rates, recorded 3.98%, up 0.58%c (point) from the previous month. As a result, the current interest rates for jeonse loans at the five major banks, including KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup Bank, are 5.21 to 7.32%.
Experts predicted that the decline in jeonse prices will continue for now due to the period of rising interest rates.
Professor Kwon Dae-jung of Myongji University’s Department of Real Estate said, “Many tenants are renewing their lease contracts instead of moving because of the interest rate increase, and the overall demand for rentals has decreased as the price rent also be adjusted downwards. “I can’t,” he explained.
Correspondent Kim Hyun-joo hjk@segye.com
[ⓒ 세계일보 & Segye.com, 무단전재 및 재배포 금지]
