"Shortage of Listings Deepens... Prices Rise as Desired" This Week's Seoul Jeonse Prices Up 0.11%

"Market Restructuring Focused on Lease Renewals, Price Increase Likely to Continue After Moving Season↑"
Buying and Selling Still a Tug-of-War... Seoul Apartment Price Growth Slows Down

[Asia Economy Reporter Yuri Kim] After Chuseok, the cautious market trend continued, leading to a reduced rate of apartment price increases in Seoul, Gyeonggi, and Incheon. Overall transactions have significantly decreased, but listings are not accumulating. The stalemate between sellers and buyers persists, resulting in sluggish transactions. The jeonse (long-term lease) market is experiencing an even more severe shortage of listings due to the implementation of the new lease law and the spread of COVID-19, which has reshaped the market primarily around lease renewals. The phrase "whatever the asking price" is being used to describe the worsening jeonse scarcity.

According to Real Estate 114 on the 9th, apartment sale prices in Seoul rose by 0.04%, continuing the slowdown in growth. Reconstruction apartments increased by 0.01%, while general apartments rose by 0.05%. Additionally, Gyeonggi and Incheon rose by 0.04%, and new towns increased by 0.03%, all showing smaller gains compared to the previous week.

The metropolitan area's jeonse market continued to suffer from a shortage of listings, with Seoul rising by 0.11%, Gyeonggi and Incheon by 0.07%, and new towns by 0.03%.

In Seoul, districts such as Gangdong (0.13%), Gangbuk (0.13%), Gangseo (0.10%), Dongdaemun (0.08%), Songpa (0.08%), Gwanak (0.07%), Nowon (0.07%), Yeongdeungpo (0.06%), Guro (0.04%), Yangcheon (0.04%), and Eunpyeong (0.04%) saw price increases. Gangdong and Gangbuk experienced larger gains centered around large apartment complexes. In Godeok-dong, Godeok Gracium, Amsa-dong Lotte Castle First, Seonsa Hyundai, and Dunchon-dong Dunchon Prugio rose by 10 to 25 million KRW. In Gangbuk, Mia-dong Buksan Live Park increased by about 10 million KRW. In Gangseo, apartments such as Huagok-dong Ujangsan Lotte Castle, Gayang-dong Gangseo Hangang Xi, and Deungchon-dong Jugong 5 Complex rose by 10 to 25 million KRW. In Dongdaemun, Dapsimni-dong Dapsimni Raemian Weave, Doosan, and Hwikyung-dong Dongil Sweet River increased by 10 to 15 million KRW.

New towns such as Jungdong (0.06%), Gimpo Hangang (0.05%), Bundang (0.04%), Ilsan (0.04%), Pyeongchon (0.04%), Dongtan (0.02%), and Gwanggyo (0.02%) rose, while other new towns remained stable without significant changes. In Gyeonggi and Incheon, Gwangmyeong (0.09%), Namyangju (0.09%), Anyang (0.08%), Hanam (0.08%), Goyang (0.07%), Guri (0.07%), Suwon (0.07%), Uiwang (0.06%), and Uijeongbu (0.06%) increased. Conversely, some outer areas of Gyeonggi such as Yangju, Icheon, and Gwangju showed stability.

The metropolitan area's jeonse market continued to suffer from a shortage of listings, with Seoul rising by 0.11%, Gyeonggi and Incheon by 0.07%, and new towns by 0.03%.

In Seoul's jeonse market, despite ongoing shortages, districts such as Gangdong (0.39%), Gangbuk (0.23%), Gwanak (0.23%), Songpa (0.21%), Nowon (0.19%), and Geumcheon (0.18%) saw increases. Gangdong's jeonse market also saw steady demand in large complexes, boosting the rise. Godeok-dong Godeok Gracium, Amsa-dong Lotte Castle First, Seonsa Hyundai, and Dunchon-dong Dunchon Prugio increased by 5 to 25 million KRW. In Gangbuk, Mia-dong Buksan Live Park and Beon-dong Jugong 1 Complex rose by 2.5 to 10 million KRW. In Gwanak, Bongcheon-dong Gwanak Woosung, Gwanak Prugio, and Buksan Blooming increased by 5 to 15 million KRW.

New towns such as Sanbon (0.10%), Gimpo Hangang (0.07%), Ilsan (0.04%), Jungdong (0.04%), Gwanggyo (0.04%), and Bundang (0.03%) rose. Gyeonggi and Incheon saw increases in Hanam (0.19%), Namyangju (0.15%), Gwacheon (0.13%), Gwangmyeong (0.13%), Guri (0.12%), Uiwang (0.10%), Goyang (0.09%), Gimpo (0.09%), Siheung (0.09%), and Yongin (0.09%), including areas with 3rd phase new town supply.

Even after Chuseok, the metropolitan apartment market continues to show a pause in momentum. Lim Byung-cheol, Senior Researcher at Real Estate 114, said, "Although apartment transaction volumes have sharply declined, there is no backlog of listings yet, and demand for mid- to low-priced apartments continues, so the tug-of-war between sellers and buyers is expected to persist for some time."

On the other hand, the jeonse market is expected to maintain its upward trend for an extended period even after the autumn moving season. He explained, "With the new lease law leading to more tenants renewing contracts, the jeonse shortage is worsening, and combined with demand waiting for 3rd phase new town subscriptions, market instability is increasing. Especially, since those waiting for subscriptions must maintain non-homeownership status for 3 to 5 years until moving in, some metropolitan areas including 3rd phase new towns will see intensified jeonse difficulties due to the concentration of non-homeowners trying to fulfill residency requirements."

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