"Geumcheon-gu 700 Million Won, Not Sale but Jeonse" Seoul Outskirts Jeonse Market Also 'Screaming'

Half the Listings Reduced, Prices Soar to Billions
Actual Transactions of 84㎡ Units from 500M to 700M KRW Even in Seoul Outskirts

Gwangmyeong Faces Redevelopment and Reconstruction Relocation Overlap
Only 6 Jeonse Listings Across 17 Complexes in Cheolsan-dong

[Asia Economy Reporters Yuri Kim, Onyu Lim] Civil servant A, who lives in a small apartment in Sangye-dong, Seoul with a jeonse deposit of 200 million KRW, gave up plans to move to a larger home after looking for jeonse properties nearby. This is because there are not many jeonse listings available, and prices have risen excessively. He said, "The jeonse prices for nearby newly built apartments are more than double the current jeonse price, making it unaffordable." For example, the jeonse market price for an 84㎡ (exclusive area) apartment in the nearby new F complex reaches up to 700 million KRW.

Despite various measures introduced by the government and the implementation of the new Housing Lease Protection Act, the jeonse shortage in Seoul shows no signs of easing. Not only the Gangnam area, where school district demand is concentrated, but also relatively affordable outer Seoul areas and adjacent regions are experiencing severe jeonse shortages. The jeonse and monthly rent price caps and the right to request contract renewal, introduced in the name of tenant protection, are being criticized for destabilizing housing security for ordinary citizens.

◆"700 million KRW in Geumcheon-gu, not sale but jeonse" Jeonse prices rise even in Seoul outskirts

According to frontline real estate agencies on the 21st, record-high jeonse prices are emerging in outer Seoul areas with many mid-to-low priced apartments, such as Nodogang (Nowon, Dobong, Gangbuk districts) and Geumgwan-gu (Geumcheon, Gwanak, Guro districts). On the 27th of last month, an 84㎡ apartment in Namseoul Hillstate, Siheung-dong, Geumcheon-gu, Seoul, was traded at 750 million KRW. The previous highest price was in the 500 million KRW range, but it jumped directly to the 700 million KRW range without passing through the 600 million KRW range. A representative from B Real Estate Agency in Siheung-dong said, "Among about 1,700 households, there are fewer than 10 jeonse listings, so the asking price is whatever the market will bear."

The situation is similar for older apartments. On the 11th, an 84㎡ apartment in Donga 1st Complex, Sindorim-dong, Guro-gu, was traded at a record-high jeonse price of 650 million KRW. The previous highest price was 585 million KRW in March this year. Compared to a year ago (500 million KRW), the price has risen by 150 million KRW.

As prices soar, even in Seoul's outskirts, 84㎡ apartment jeonse prices exceeding 500 million KRW are becoming common. On the 6th, an 84㎡ apartment in Junggye Central Park, Sangye-dong, Nowon-gu, was traded at a record-high 550 million KRW, and the nearby Beacon Dream Hill 3rd Complex 84㎡ also entered the 500 million KRW range for the first time on the 17th. Additionally, an 84㎡ apartment in Raemian Tribera 1st Complex, Mia-dong, Gangbuk-gu, was traded at 550 million KRW on the 28th of last month, and Gocheok Park Prugio in Gocheok-dong, Guro-gu, was traded at 520 million KRW on the 23rd of last month.

◆Listings decrease and prices rise... "Are these measures really for tenants?"

The upward trend in jeonse prices is appearing throughout Seoul. According to KB Real Estate Live On, Seoul apartment jeonse prices rose by 0.38% over one week. Although the increase is smaller compared to the previous week (0.41%), none of the 25 autonomous districts showed a decline. The top areas with the highest increase rates were Gangseo-gu (0.80%), Songpa-gu (0.78%), Eunpyeong-gu (0.66%), Gangbuk-gu (0.65%), and Nowon-gu (0.50%), most of which are outer Seoul areas.

The volume of listings has also sharply decreased. According to the real estate big data company "Asil (Apartment Real Transaction Price)," as of the 21st, the number of jeonse listings for Seoul apartments was 85,821, which is about half compared to two months ago right after the June 17 measures (151,908 listings). The decrease in listings was also evident in outer areas such as Eunpyeong-gu (-58.6%), Jungnang-gu (-50.5%), Dobong-gu (-47.2%), and Gangseo-gu (-44.5%).

Jeonse scarcity is also prominent in Gyeonggi Province, which has good access to Seoul. In particular, in Gwangmyeong City, the large-scale redevelopment and reconstruction relocation demand has completely dried up jeonse listings. According to Naver Real Estate and nearby real estate agencies, there are only six jeonse listings across 17 complexes in the Cheolsan-dong area. C, a member of the Gwangmyeong 1 District union, said, "Union members who are preparing to relocate late are frustrated because there are no jeonse listings nearby."

Experts expect this trend to continue for the time being. Ham Young-jin, head of the Zigbang Big Data Lab, expressed concern, saying, "The Lease Protection Act and others are reducing the total volume of jeonse and monthly rent listings, and the abolition of the apartment purchase rental business system, the requirement to actually move in within six months for mortgage loans, and the strengthening of actual residence requirements for long-term holding special deductions for one-homeowners will also reduce the supply of new jeonse listings."

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