Hanam City Apartment and Jeonse Prices Continue to Rise Despite Strengthened DSR Regulations

Apartment sale prices and jeonse (lump-sum deposit) prices in Hanam City, Gyeonggi Province, continue to show steady growth in September 2025. Despite the government's strengthened loan regulations through the Debt Service Ratio (DSR) policy, the Hanam real estate market remains hot. Experts analyze that multiple factors including Seoul accessibility, new infrastructure investment, and school district preferences are sustaining the Hanam real estate market.

Current Status of Hanam's Real Estate Market

According to the Korea Real Estate Board, Hanam City's apartment sales price index for the third week of September rose 0.35% from the previous week. This is three times higher than Gyeonggi Province's average (0.12%). Newly constructed apartment complexes in Misa Riverside City and Gamil District led the increase. The representative complex "Misa Riverside Prugio World Mark" in Misa Riverside City surpassed 1.5 billion won for an 84㎡ unit, up 12% from last year. "Hanam Gamil Hangang Central Prugio" in Gamil District is also trading at around 1.4 billion won for 84㎡ units.

The jeonse market is also strong. Hanam City's September jeonse price index rose 1.2% month-over-month, recording the highest increase rate in the Seoul metropolitan area. There's a "jeonse shortage" phenomenon where demand is high but supply is insufficient. As landlords prefer monthly rent over jeonse, the number of jeonse properties has decreased, contributing to jeonse price increases. In some complexes, the jeonse-to-sale price ratio exceeds 70%, raising concerns about "empty jeonse" risks.

Background of Rising Prices: Location and Infrastructure

The first reason for Hanam City's strong real estate market is its Seoul accessibility. With the opening of Line 5 extension (Hanam Line) in the first half of 2025, travel from Misa Riverside City to Gangnam now takes only 30 minutes. For Seoul commuters, Hanam is now perceived as part of "Seoul's living area." Additionally, its proximity to Wirye New Town and Songpa/Gangdong Districts offers easy access to educational, medical, and shopping infrastructure.

The second factor is new development prospects. Hanam City is promoting the "Gyosan New Town" development, where a residential complex of 15,000 households is planned. With large shopping malls and office facilities being additionally constructed near Misa Riverside City, expectations are high for increased regional value. The third factor is school district preference. Hanam City is evaluated as having favorable educational conditions within Gyeonggi Province, with strong demand from families in their 30s-40s who prioritize children's education.

Paradox of DSR Regulations and Market Outlook

The government strengthened DSR (Debt Service Ratio) regulations from 2024 to curb household debt growth. DSR refers to the ratio of annual principal and interest repayment amounts for all loans relative to annual income, with additional loans becoming difficult when exceeding 40%. While this regulation was expected to weaken homebuyers' purchasing power, a paradoxical phenomenon is occurring in the Hanam market. As loan regulations tightened, investment by wealthy individuals with cash resources has increased. Additionally, as loans became harder to obtain, jeonse demand has further increased, fueling jeonse price rises.

Real estate experts predict that the Hanam market will maintain its strength for the time being. However, they note that adjustments are possible if variables such as additional government regulations, interest rate hikes, or large-scale new supply occur. A KB Kookmin Bank real estate expert advised, "Hanam has excellent location and infrastructure, providing mid-to-long-term price defense power, but short-term rapid increases are at a burdensome level. Actual buyers should approach cautiously, and investors should consider regulatory risks." The Hanam City real estate market's future direction will be determined by the course of metropolitan area real estate policies.

Original article: TrendyNews Korea