In Two Years, 36.5 Million Won Increase, Renting with Jeonse Becomes Burdensome
[Asia Economy Reporter Yuri Kim] The average jeonse price of apartments in Seoul has risen by 36.5 million KRW over the past two years. This increase is attributed to the rapid surge in Seoul housing prices and the growing demand for subscription waiting ahead of the implementation of the private land price ceiling system.
According to the monthly KB Housing Price Trend report by KB Kookmin Bank's Real Estate Live On on the 2nd, the average jeonse price of apartments in Seoul last month was 486.56 million KRW. This is an increase of 24.14 million KRW (5.2%) compared to 462.41 million KRW during the same period last year. Compared to two years ago, it rose by 36.47 million KRW. This means that tenants who signed a jeonse contract two years ago would need more than 35 million KRW on average to renew their contracts.
Over the past year, the jeonse price of apartments increased by an average of 960,000 KRW per 3.3㎡. Converted to an 84㎡ (exclusive area) apartment, this means the jeonse price rose by 24.37 million KRW. Based on this size, the area with the highest increase in jeonse prices over the past year was Gangnam-gu, where prices jumped by 81.71 million KRW (11.6%). Seocho-gu and Songpa-gu also saw significant increases of 48.91 million KRW and 35.96 million KRW respectively, highlighting the notable rise in jeonse prices in the three Gangnam districts. Following these were ▲Gwangjin-gu with 32.06 million KRW ▲Seongdong-gu with 31.65 million KRW ▲Seongbuk-gu with 28.59 million KRW ▲Yangcheon-gu with 28.30 million KRW. In contrast, Dobong-gu saw the smallest increase among Seoul’s 25 autonomous districts, rising by only 4.94 million KRW.
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The area with the highest average jeonse price for an 84㎡ apartment was also Gangnam-gu, at 785.74 million KRW. Seocho-gu required 730.03 million KRW. Following were Songpa-gu (544.95 million KRW), Jung-gu (542.12 million KRW), Yongsan-gu (539.21 million KRW), Gwangjin-gu (525.72 million KRW), and Seongdong-gu (522.27 million KRW). Dobong-gu (303.34 million KRW), Jungnang-gu (345.80 million KRW), Gangbuk-gu (337.35 million KRW), Nowon-gu (327.57 million KRW), and Geumcheon-gu (314.93 million KRW) had average jeonse prices for 84㎡ apartments below 350 million KRW.
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