"Jeonse Prices Still Soaring" Gangnam Also Surpasses 'Average 900 Million' Following Seocho

[Asia Economy Reporter Yuri Kim] The jeonse prices in Seoul continue to soar. Following Seocho-gu, Gangnam-gu's average apartment jeonse price has also surpassed 900 million KRW, showing no signs of stabilization.

According to Real Estate 114 on the 11th, the average apartment jeonse price in Seoul last month was 511.13 million KRW, rising by more than 10 million KRW in just two months. Based on actual jeonse contracts, appropriate market prices received from member brokerage offices, and independent surveys, the price first exceeded 500 million KRW in June (503.6 million KRW) and reached 511.13 million KRW this month.

As prices continue to rise, the average jeonse price for apartments in Gangnam-gu reached 903.3 million KRW, surpassing 900 million KRW for the first time. After Seocho-gu exceeded 900 million KRW in June, Gangnam-gu is the second among the 25 autonomous districts in Seoul to do so. Last month, Seocho-gu's average jeonse price was 925.7 million KRW, which is 3.5 times higher than the lowest, Dobong-gu (268.49 million KRW). Songpa-gu, the youngest among the 'Gangnam 3 districts,' also surpassed the 700 million KRW mark last month with an average jeonse price of 704.94 million KRW.

Gyeonggi Province is also experiencing a continued surge in jeonse prices. The most expensive city, Gwacheon-si, reached 670.19 million KRW. Notably, Hanam-si saw a sharp 4.0% increase in just one month, marking the steepest rise among the 31 cities, counties, and districts in Gyeonggi Province. Last month's average jeonse price there was 444.23 million KRW.

Meanwhile, according to the Korea Real Estate Agency, Seoul's jeonse prices have risen for 63 consecutive weeks, increasing by 0.09% this week. The ongoing shortage of listings is attributed to the implementation of the Lease Protection Act, including the Jeonse and Monthly Rent Cap System and the Right to Request Contract Renewal, as well as strengthened residency requirements. Additionally, the continuation of social distancing at level 2.5 due to COVID-19 has dampened transaction activities, sustaining this trend. KB Real Estate Live On's data shows that the recent rate of increase is accelerating, with weekly growth rates around 0.4% since the second week of August, and this week’s increase expanding to 0.45%.

The jeonse supply-demand trend index remains in the 'supply shortage warning' state. This week it recorded 189.7, close to last week's 189.8, maintaining a high level near 190. The national jeonse supply-demand index rose to 185.9 from last week's 185.3. This index uses 100 as a baseline, with higher values indicating more severe supply shortages. The head of A Real Estate Agency in Seocho-dong, Seoul, said, "With both purchase prices and jeonse prices rising sharply, tenants are facing many concerns about whether to buy a home."

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