"Missing Listings Drive Prices Up"...Jeonse Prices Surge Across the Seoul Metropolitan Area

After the June 17 Measures, Jeonse Price Increase Widens
Hanam Renewal Requires Deposit Jump to 200 Million Won
Policy Failure...Worsening Housing Instability for Ordinary People

[Asia Economy Reporters Moon Jiwon, Kim Yuri] Jeonse prices are soaring. After nearly a year of steady increases in Jeonse prices, the housing burden on low-income residents has grown, and the June 17 real estate measures have further accelerated the rise, creating an atmosphere of market instability. The already scarce Jeonse listings have disappeared since the announcement of the measures, raising concerns about a large-scale Jeonse crisis.

According to the real estate industry on the 1st, complexes in major areas of Seoul and Gyeonggi Province have recently seen Jeonse prices rise by tens of millions of won or more. In Jamsil-dong, Songpa-gu, Seoul, a Jeonse contract for Jamsil Els 84㎡ (exclusive area) was signed on the 29th of last month for 1.2 billion won, setting a new record price. Considering that it was mainly traded in the 900 million won range before the June 17 measures, this represents an increase of over 200 million won in a short period.

The sharp rise in Jeonse prices is not limited to the Gangnam area but is spreading to Gangbuk and various adjacent metropolitan areas. The prices of apartments in Gyeonggi Province have surged since last year, increasing Jeonse demand continuously, and combined with the demand waiting for the 3rd new town subscription, prices are skyrocketing.

According to the Ministry of Land, Infrastructure and Transport's real transaction price disclosure system, a Jeonse contract for a 74㎡ unit at Misa Riverside Golden Centro in Mangwol-dong, Hanam, Gyeonggi Province, was made on the 20th of last month for 520 million won. Earlier this year, there were listings in the 300 million won range, but now the basic price is 400 to 500 million won, and even then, it is difficult to find available units, according to nearby real estate agents. If a Jeonse contract signed two years ago expires and must be renewed at this year's market price, the deposit could increase by nearly 200 million won. The representative of real estate agency A in this area said, "It is hard to find Jeonse listings themselves," and added, "The price is whatever the seller asks."

This rapid price increase trend is also confirmed by statistics. According to the Korea Real Estate Board's apartment price trends, Jeonse prices in the metropolitan area have risen for 46 consecutive weeks since the second week of August last year. Last week, Seoul rose by 0.08%, and the metropolitan area by 0.17%. Listings have disappeared, and transactions have sharply decreased. According to the Seoul Real Estate Information Plaza, the volume of Jeonse and monthly rent transactions for Seoul apartments was 6,611 last month, marking a decrease for four consecutive months since February (19,002). Following May (9,813), it has fallen below 10,000 for two consecutive months. This is the first time since related statistics began in 2011.

Despite the government's tightening of loan regulations, imposing a two-year residency requirement for reconstruction, and introducing the land transaction permit system to curb soaring housing prices, criticism is growing that housing prices remain uncontrolled while Jeonse prices continue to rise. According to the monthly housing price trend time series data released by KB Kookmin Bank, the median Jeonse price for Seoul apartments last month was 461.29 million won, the highest since the survey began in April 2013. Demand relative to supply is increasing further. During the same period, Seoul's Jeonse supply-demand index also reached 173.5, the highest since April 2016 (174.7).

This content was produced with the assistance of AI translation services.