Property information attached to a real estate in Seoul. /yunhap news
Kim Mo (37), who was looking for a gap investment (buying a house with a jeonse) in the outskirts of Seoul, such as Nodo River (Nowon, Dobong, and Gangbuk), recently gave up the investment. After the enforcement of the new lease protection law, it was thought that the jeonse price would increase a lot, which would be advantageous for gap investment.
Gap investment is also disappearing as house prices in the outskirts of Seoul have soared. In the past, there was a lot of gap investment in the outskirts, where the house price was relatively cheap and the leased price was high. However, as homeless end users, tired of the cheonsei crisis, jump into buying and selling, the gap investment is also decreasing as the difference between the selling price and the rented price widens as the house price rises.
According to Asil (apartment real estate transaction price), a real estate big data company on the 5th, the share of gap investment in most areas of Seoul in January was significantly lower than that of the previous month. In the case of Nowon-gu, the share of gap investment at the beginning of this year fell to a level below 1% of all housing transactions. Of the total 423 transactions, only 4 were gap investments. Considering that it was 17% in the same month last year and 4% in the previous year, the proportion has been greatly reduced.
Dobong-gu and Geumcheon-gu also recorded 1% of the same month. Gwanak-gu showed 4%, Guro-gu 5%, and Gangbuk-gu 7%. Among the outlying areas such as the Nodo River Geumgwan-gu, the share of gap investment in all districts except Gangbuk-gu decreased. In some cases, it was lowered from two digits to one digit.
The proportion of gap investment in the entire Seoul area outside of the suburbs is decreasing. In the case of Gangnam-gu, the share of gap investment reached about 30% of all housing transactions until the first half of last year (29% as of April). Then, after falling to 19% in July, it fell to 10% in December and 4% in January this year. Seocho-gu also showed a similar pattern, and the share of gap investment, which reached 10% in December last year, decreased to 2% last month. The regions in Mapo and Seongdong-gu, Gangbuk, where consumers’ preferences are high, also fell to 1% and 2%, respectively.
An apartment complex in Nowon-gu, Seoul. yunhap news
Usually, gap investment increases when the total price rises while the house price is stagnant. This is because the higher the jeonse value, the lower the cost of the gap investment. In the apartment market in Seoul, the price of jeonse has risen for 88 weeks in a row, and complexes with a deposit of several hundred million won in two to three months are appearing one after another.
Looking at the flow of jeonse prices, gap investment should increase, but the reality is the opposite. This is because the trading price is rising beyond the jump in the jeonse price. As the jeonse crisis intensified after the enforcement of the lease law, unbearable end-of-home consumers are buying houses, and the prices of houses are rising. As homeless people started buying around mid- to low-end complexes in the outskirts, shortages of sales and rising house prices are occurring.
Gwanak-gu U-authorized official said, “If the inquiries from investors are 1, the consultations of end users are overwhelming enough to reach 9,” and “Many end-users are worried about whether the price has risen so much that they are catching up to the dead.” He said, “I am crying at the price and buying a house with mustard.”
As the sale price jumped, the rent for apartments in Seoul fell for the first time since the enforcement of the new lease law at the end of July of last year. According to KB Kookmin Bank, the rent for Seoul apartment in February was 56.17%, down 0.09 percentage points from the previous year (56.26%). It rose continuously from 53.27% in August of last year to 56.26% in January of this year, and then fell for the first time. An official in the real estate industry analyzed that “the jeonse price has risen a lot, but the increase in the sale price is so large that it is interpreted as a phenomenon that the jeonse price has not been able to keep up.”
Ahn Hye-won, Hankyung.com reporter [email protected]