Submitted2024.04.27 12:23
Edit2024.04.27 13:50
Gap Investment Hwaseong and Suwon ‘wiggle’ Seoul ‘quiet’
Photo = Yonhap News As apartment rental prices across the country remain strong this year, ‘gap investment’ (an investment method of buying a house with a deposit) is rising in the southern metropolitan area and Chungcheong Province, giving including Hwaseong and Suwon in Gyeonggi Province and Cheonan in South Chungcheong Province. It is explained that favorable development factors such as the Seoul Metropolitan Rapid Transit (GTX) and the creation of a semiconductor cluster are expected. In Seoul, where the difference between the selling price and the price of jeonse amounts to hundreds of millions of won, the proportion of gap deposits has decreased even though jeonse prices have continued to rise for 49 weeks. There are also opinions in the industry that it will be difficult for jeonse-related investment demand to continue as there are many variables such as a delay in interest rate cuts and more uncertainty in policy such as easing rebuild.
◆ Good news for GTX… Active sales including rentals in Hwaseong and Suwon
According to Asil, a real estate big data company, on the 28th, Hwaseong, Gyeonggi Province (52 cases) was the area with the largest number of vacancy deposits over the past three months. This was followed by Gimhae, Gyeongnam (38 cases), Yeongtong-gu, Suwon, Gyeonggi (36 cases), Seobuk-gu, Cheonan, South Chungcheong Province (36 cases), and Seo-gu, Incheon (34 cases) . Asil believes that it is a gap investment if you have sold an apartment in the last three months and entered into a rental contract or monthly rent without living there. On the 11th of last month, the exclusive 59㎡ area of ’Nechimi Village Jugong Complex 2′ in Byeongjeom-dong, Hwaseong was sold for 298 million won. A week later, a rental contract was signed for 268.29 million won. The difference between the selling price and the rental price was only about 30 million won. The 84㎡ exclusive use of ‘Shindongtan Prugio’ in Gisan-dong, Hwaseong was traded for 346 million won in February, and then found a tenant for 300 million won on the same day.
In Suwon, transactions that are considered gap investments are taking place one after the other. The sales price of 73㎡ only for ‘Yeongtong Edu Park’ in Yeongtong-dong, Yeongtong-gu, Suwon, which was sold last February was 562 million won. In the same month, a rental contract was signed for 495 million won. It’s like buying an apartment for 65 million won.
Hwaseong and Suwon have something in common: they are GTX advantage areas. The GTX-C route is expected to stop in Suwon, and Hwaseong was included in the C route expansion plan announced earlier this year. Cheonan and Incheon Seo-gu, where many gap investments have taken place, are also planning to open lanes C and D, respectively. The analysis is that the metropolitan area, with the exception of Seoul, attracted the attention of consumers because it was possible to invest with a relatively small amount. Kwon Il, head of the real estate intelligence team, said, “The initial investment amount in regions such as Gyeonggi and Incheon is lower than in Seoul,” but added, “It is not clear how long the impact will last.” because of favorable development, and house prices could rise too much, so we have to be careful about investment.”
◆ Seoul is ‘quiet’ with a jeonse rate in the 40% range.
In Seoul, even if jeonse prices have been rising for 49 weeks, the proportion of gap deposits has been decreasing this year. In January last year, gap investment accounted for 11% (555 cases) of the 4,643 apartment transactions in Seoul. After that, it recorded 7% in February and 4% in March.
The explanation is that although the price of the lease is strong, the rental rate (ratio of rental price to sales price) is only about 40%, making it difficult to implement a gap investment. Usually, when the jeonse rate is high, the difference between the selling price and the jeonse price decreases, increasing the demand for gap investment. According to Real Estate R114, the rental rate for apartments in Seoul last month was 47.52%. There is no significant difference from a year ago (47.05%).
In 2019, the apartment rental rate in Seoul was in the 50% range as of January, but fell to 49.96% in December of the same year. After that, it maintained the rate of 49% and recovered to 50.46% in November 2020, showing jeonse rate in the 50% range until 2021. Team Leader Kwon explained, “If the rental rate around 40%, it’s a very low rate,” and “It’s a difficult time to make gap investments aggressively because the lease price is lower than in 2019 and 2020. ” It is being analyzed that the demand for gap investments which aim to profit from the market price has also decreased due to the overall decline of the real estate market. As the timing of an interest rate cut is not clear and the wait-and-see attitude continues for house prices, the incentive to invest is weak except in some favorable sectors. Soo-min Yoon, a real estate expert at Nonghyup Bank, said, “At one time, the national jeonse rate went up to the 70% range, so it was possible to buy an apartment with only 30% of the house price.” The financial burden is so great,” he said.
Reporter Han Myeong-hyeon
2024-04-27 03:23:24
#bought #apartment #million #won #Investors
