Rental Price in Gangnam Area Expected to Drop with Move-in of New Apartment Complex


Banpo-dong captain ‘Acro River Park’ shakes the rental price
“If the occupancy site starts in earnest, it is expected to drop hundreds of millions more”

A view of Acro River Park in Banpo-dong, Seocho-gu, Seoul. Photo = Hankyung DB

The rental price in Seocho-gu, Seoul is uneasy. It is because of the large-scale ‘residence area’. There is a prospect that the rental car market will become unstable as move-in approaches. A real estate brokerage representative in Banpo-dong, Seocho-gu predicted, “The closer you move in, the more the rental price will fall.”

According to a real estate agency and Naver Real Estate in Banpo-dong, Seocho-gu on the 3rd, the rental price of 84㎡ dedicated to ‘Acro River Park’ in Banpo-dong fell to 1.29 billion won and was pushed out of the 1.3 billion won range. The exclusive 59㎡ is between 1 billion and 1.1 billion won.

Compared to a year ago, the sharp drop in jeonse prices is remarkable. In May of last year, a new contract was signed for the exclusive rental price of 84㎡ for this complex at 2.3 billion won. A charter contract for 59㎡ was also signed for 1.6 billion won. In the case of 84㎡ for exclusive use, it is 1 billion won lower than last year’s peak, and for 59㎡ for exclusive use, it is about 600 million won lower.

‘Acro River Park’ is a complex that was moved in in 2016 after reconstructing Sinbanpo 1. In 2019, it exceeded 100 million won per 3.3㎡, and it has been maintaining the representative complex in the Gangnam area for 8 years. The reason why the rental price of this complex is fluctuating recently is that ‘Raemian One Bailey’ (2990 households) next to the complex is about to move in in August.

Read more:  The nobles of Liechtenstein study to sell the Spanish group BC to Silverlake

The rental price of ‘Raemian One Bailey’ was formed lower than that of ‘Acro River Park’. The private 84㎡ jeonse price is as low as 1.2 billion won, and the exclusive 59㎡ jeonse price comes out at 920 million won, which is below 1 billion won.

Panoramic view of ‘Raemian One Bailey’ in Banpo-dong, Seocho-gu = Reporter Lee Song-ryeol

A certified brokerage official in Banpo-dong said, “The move-in of ‘Raemian One Bailey’ is scheduled for the end of August, but the market price is being formed as chartered items come out ahead of move-in.” said.

A certified brokerage official in Banpo-dong B said, “There are many cases where consumers who need to enter ‘Raemian One Bailey’ come and live in ‘Acro River Park. ‘Raemian One Bailey’ itself is also on the market, so the volume is on the rise,” he explained.

When the move-in starts in earnest, the price is expected to drop hundreds of millions of won more than the current price. Usually, the closer the move-in place is, the lower the rental price, and the price rebounds as it is finished.

A certified brokerage official in Banpo-dong C predicted, “Currently, it is formed at around 1.3 billion won based on the exclusive 84㎡, but when the occupancy starts in earnest, it will be 100 million to 200 million won lower than this.” He added, “However, there is a difference of about 300 million won between the 59㎡ and 84㎡ rental prices for normal use, but the exclusive 59㎡ rental price is holding up, so it will be difficult for the exclusive 84㎡ rental price to go below 1 billion won.”

Read more:  Chairman of the police union ACP lays down his job after reports of cross-border behavior
A view of a real estate agency in Seoul. Photo = Hankyung DB

It is expected that it will be difficult to avoid a reverse trend in Gangnam in the second half of the year as unprecedented supply is pouring out mainly in the 3rd district of Gangnam, Seoul. According to the real estate information providing app (application program), the number of apartment complexes moving into Seocho-gu from this month to the beginning of next year is 3,470. During the same period, there were 6,991 households in Gangnam-gu, with 10,461 households concentrated in the Gangnam area.

An authorized brokerage representative in Gaepo-dong, where the rental price fluctuated and recovered recently, said, “As the supply of apartments continues in the Gangnam area in the second half, it is expected that the rental price will continue to fluctuate for the time being.” The reverse jeonse trend, which lowers the price, will continue. The rental car market will be unstable for the time being,” he explained.

On the other hand, the decline in the rental price in Seocho-gu is also shown in statistics. According to the Korea Real Estate Agency, as of the last week of last month (25th), the rental price in Seocho-gu fell 0.06%. It has been falling for 46 consecutive weeks since the third week (18th) of July last year. The decline has slowed in recent years, but the downward trend is still ongoing.

It is not easy to smoothly digest the quantity. Looking at the Jeonse Supply and Demand Index in the southeastern region, including Gangnam District 3, as of the last week of last month (25th), it was 87.3, improved from Jeonju (82.1), but still below 100. If this index is below 100, it means that there are more landlords renting than renters looking for a house.

Read more:  BRIS Stocks Buy ARB Continues, What Should I Do?

Lee Sang-ryeol, reporter [email protected]

2023-06-02 23:34:23
#Ive #lost #billion.. #Halfcut #Gangnam #jeonse #price #falling

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Recent News

Editor's Pick