Reporter Shin Hye-won] As of last month, apartment rental prices across the country fell by more than 10 percent compared to two years ago. In particular, Sejong and Daegu fell by more than 25 percent over the same period, raising concerns of a reversal trend.
On the 22nd, real estate platform Jibang analyzed the recent trend of the apartment rental price index calculated by its big data solution ‘JibangRED’ and the percentage change from two years ago, and found that the national apartment rental price index fell by 11.8% in April compared to April 2021.
The JibangRED Apartment Charter Price Index, which is calculated with its own deep learning model based on actual transaction data from the Ministry of Land, Infrastructure, and Transport, is a nominal price index that is not adjusted for currency fluctuations. Last month’s index is a provisional figure that is subject to further fluctuations as the actual transaction reports have not yet been finalized.
By region, Sejong and Daegu showed the most significant declines in rental prices. Sejong has seen a 28.5 percent drop in its rental price index in two years, while Daegu has seen a 26.5 percent drop. Sejong recorded the nation’s top rental price growth rate in 2020, but the decline accelerated in late 2021 and is now down to the price of three years ago. In Daegu, the rental price index stood at 85.8 points as of last month, a level similar to October 2016, five and a half years ago.
Apartment rental prices in the Seoul, Gyeonggi, and Incheon metropolitan areas followed a similar trend before 2020, but since 2020, rental prices in Incheon and Gyeonggi have fluctuated more than in Seoul. Incheon has been experiencing a significant decline in sublet prices since its peak in October 2021. Earlier this year, it fell to the level of sublet prices in early 2020.
In terms of Seoul’s neighborhoods, Gangnam-gu and Dongjak-gu saw the biggest drops, with sublet prices down 13.2% and 12.9% from two years ago, respectively. Jibang analyzed that while some neighborhoods, such as Gangbuk-gu and Songpa-gu, have shown signs of rebounding in March and April this year, others, such as Seocho and Gangnam-gu, continue to show a downward pattern.
Percentage change from 2 years ago in apartment rental price index by Seoul borough (2021.04 → 2023.04). [Source].
Looking at the trend of rental prices by major lines in the metropolitan area, as of last month, the rental price of apartments in the station area of Line 3 fell by 12.9% compared to two years ago, showing a relatively steep fluctuation. On the other hand, Line 6 (-6.7%), Shindang Line (-8.1%), and Line 2 (-8.5%) showed relatively low declines.
In the case of Line 2, which passes through major business메이저사이트 districts in Seoul, the change in rental prices was small, and in the case of Line 6, the change rate was relatively low compared to two years ago due to the late transition to a decline in rental prices, which continued to rise until the first half of 2022 and then began to decline in the second half of 2022.
An official from Jibang said, “This year, sublease values in some areas of the Seoul metropolitan area have shown signs of rebounding due to the freezing of the benchmark interest rate and the decline in the Copex rate.” “Considering that financial market risks have not yet been resolved, such as increasing social interest in the risk of charter fraud and suggestions of further interest rate hikes in the United States, it is necessary to continue to check future transaction trends rather than discussing a rebound at this point.”