Apartment prices in Incheon, which had been on a correction since the designation of the overheated speculation zone in June this year, are both soaring last month. Jeonse prices hit a monthly high among six major metropolitan cities.
According to the Korea Appraisal Board’s housing price trend on the 9th, the rate of increase in rental prices for apartments in Incheon rose 0.93 percentage points on-month to 1.92 percent in November, the highest among metropolitan cities, as well as Busan (0.6 percentage points), Daegu (0.49 percentage points) and Ulsan (0.46 percentage points). In Incheon, the figure is the highest in 12 years since the 1.98 percent increase recorded in September 2008.
According to KB Real Estate, the jeonse price of 85m2 of Guwol Hillstate (hereinafter referred to as exclusive area) in Namdong-gu jumped from 290 million won to 310 million won at the beginning of this year to 50 million won, forming between 360 million won and 380 million won. The price of the 85m2 jeonse deposit at Hanwha Cometro 12 complex in Nonhyeon-dong also rose by 60 million won compared to the beginning of the year, soaring the jeonse rate to up to 77 percent.
The sales price increase rate remained at 0.2% for the consecutive August-October period since the designation of overheated speculation zones in June, but rose to 0.51% last month. The 84-square-meter Guwoljiwell City Prugio, which will start moving in this month, was 570 million won to 760 million won, up 250 million won from the sale price.
The real estate industry believes that this is due to a shortage of supply, such as a shortage of lease deposits in the Seoul metropolitan area. Redevelopment and reconstruction projects underway in the Juan Renewal Promotion Zone in Incheon are also increasing demand for jeonse deposits, adding to the supply shortage. An official of S real estate in Namdong-gu said, “There is a lack of lease for apartments near Incheon City Hall Station on the GTX-B route and there are many inquiries about new apartments.”