'Autumn Moving Season' Seoul Apartment Jeonse Prices Rise for 66 Consecutive Weeks

Capital Region Jeonse Price Increase Rate 0.15%... Seoul 0.09%... Increase Rate Shrinks
Expert "Jeonse Supply Shortage Will Continue Market Instability Until This Year"

Seoul apartment panorama / Photo by Moon Honam munonam@

[Asia Economy Reporter Onyu Lim] Apartment jeonse prices in the Seoul metropolitan area have been rising for 60 consecutive weeks. In particular, Seoul saw an increased rate of rise in the Gangnam 4 districts?Gangnam, Seocho, Songpa, and Gangdong?and in outer districts such as Nowon, Dongjak, and Seongdong, resulting in an overall larger increase compared to the previous week. Seoul apartment sale prices remained flat, rising slightly by 0.01% for six consecutive weeks.

Seoul Metropolitan Area Apartment Jeonse Prices Rise for 60 Consecutive Weeks: "Jeonse Shortage Effect During Autumn Moving Season"

According to the Korea Real Estate Board on the 4th, as of the survey on the 28th of last month, the jeonse price increase rate for apartments in the Seoul metropolitan area was 0.15%. This marks 60 consecutive weeks of rising prices since the second week of August last year. Although the rate of increase slightly decreased by 0.01 percentage points from the previous five weeks of 0.16%, it still remains at a high level.

The Seoul metropolitan area apartment jeonse prices peaked at 0.22% in the first week of August, right after the new Lease Protection Act took effect, and have since slowed to 0.15% in the fifth week of September. However, prices have not dropped due to a continued shortage of jeonse supply, maintaining an unstable outlook. The Real Estate Board explained, "Due to the low interest rate environment, the implementation of the new lease law, and the autumn moving season, jeonse prices continue to rise mainly in well-located areas near subway stations."

Most experts expect the instability in the jeonse market to persist at least until the end of this year.

Seoul apartment jeonse prices rose by 0.09%, marking 66 consecutive weeks of increase. The rate of increase slightly expanded from 0.08% the previous week. Notably, areas with many high-priced jeonse apartments such as the Gangnam 4 districts (0.10%→0.12%), as well as outer districts like Nowon (0.07%→0.14%) and Dongjak (0.08%→0.12%), saw their rate of increase grow by 1.5 to 2 times.

Within the Gangnam 4 districts, Gangnam-gu increased from 0.09% to 0.12%, Seocho-gu from 0.07% to 0.09%, while Songpa-gu (0.12%→0.13%) and Gangdong-gu (0.13%→0.14%) also saw higher rates than the previous week.

In Dogok-dong, Gangnam-gu, Dogok Rexle 85㎡ (exclusive area) recorded a jeonse transaction on the 28th of last month with a deposit of 1.55 billion KRW (5th floor), renewing the highest price record. In Daechi-dong, Raemian Daechi Palace 91.93㎡ also signed a jeonse contract last month at the highest price with a deposit of 1.73 billion KRW (28th floor).

In Nowon-gu, the 24-year-old Hagye 1st Apartment exclusive 84.6㎡ signed a jeonse contract on the 11th of last month with a deposit of 500 million KRW (7th floor), surpassing 500 million KRW for the first time. Boram 2nd Complex 79.25㎡ in Sanggye-dong signed a jeonse contract on the 26th of last month at 400 million KRW (10th floor), breaking the 400 million KRW mark.

In Dongjak-gu, the 28-year-old Geukdong Apartment 84.32㎡ signed a jeonse contract on the 23rd of last month with a deposit of 530 million KRW (15th floor), breaking the highest price record. Besides Nowon and Dongjak-gu, Jongno-gu (0.02%→0.03%) and Seongdong-gu (0.08%→0.09%) also saw increased rates of rise.

Apartment jeonse prices in Gyeonggi Province rose by 0.19%, marking 60 consecutive weeks of increase. This is a 0.02 percentage point decrease from the previous four weeks of 0.21%.

In Danwon-gu, Ansan-si, the rate rose from 0.29% to 0.37%, and in Gwangmyeong-si from 0.41% to 0.46%. Other areas such as Ilsandong-gu (0.17%→0.24%) and Deogyang-gu (0.28%→0.29%) in Goyang-si, and Uijeongbu-si (0.25%→0.28%) also increased.

In Incheon, the overall rate slightly decreased to 0.12% from 0.13% the previous week. However, Jung-gu (0.24%→0.56%), Namdong-gu (0.02%→0.11%), Bupyeong-gu (0.08%→0.12%), and Gyeyang-gu (0.09%→0.13%) saw increases.

Seoul apartment panorama / Photo by Moon Honam munonam@

Seoul Apartment Sale Prices Rise Slightly by 0.01%: "Impact of Government Regulations and Prolonged COVID-19 Economic Slowdown"

Seoul apartment sale prices rose by 0.01% this week, marking a slight increase for six consecutive weeks. Due to the government's July 10th and August 4th measures, concerns over economic slowdown caused by COVID-19, and a cautious market sentiment, transactions have sharply declined, with price increases continuing mainly in apartments priced below 900 million KRW and in small to medium-sized units.

In the Gangnam 4 districts, which have many high-priced homes, Seocho-gu and Songpa-gu have recorded flat prices (0.00%) for eight consecutive weeks since the second week of August due to holding tax burdens, while Gangnam-gu maintained a steady 0.01% increase for eight consecutive weeks. Gangdong-gu recorded a 0.01% increase for four consecutive weeks.

Other areas in Seoul also saw increases limited to between 0.00% and 0.02%.

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