"Impact of Online Semester Start"... Seoul One-Room Jeonse Prices Fall for the First Time in 8 Months

Dabang "Average Jeonse Price for Multi-Family and Multi-Household Homes Under 30㎡ in Seoul is 159.48 Million KRW"

[Asia Economy Reporter Onyu Lim] The average jeonse deposit for one-room units (multi-family, multi-household, and row houses with exclusive area under 30㎡) in Seoul has declined for the first time in eight months.

On the 3rd, Dabang analyzed the Ministry of Land, Infrastructure and Transport's actual transaction price disclosure system and found that the average jeonse deposit for one-room units traded in Seoul last September was 159.48 million KRW. This represents a decrease of about 2.8% (4.58 million KRW) compared to 164.06 million KRW in the previous month. The average jeonse deposit for one-room units in Seoul had steadily increased since February, reaching this year's highest point in August. The drop in jeonse deposits is the first since January, marking an eight-month decline.

A Dabang official interpreted this as "the impact of decreased demand for one-room units near universities due to the increase in online classes caused by the COVID-19 pandemic."

In September, jeonse deposits for one-room units in Seoul fell in 18 out of 25 districts compared to the previous month. The district with the largest decline was Nowon-gu (-18.6%), followed by Dongjak-gu (-14.1%), Mapo-gu (-10.0%), and Guro-gu (-9.2%). Conversely, Seongdong-gu (9.3%), Geumcheon-gu (3.1%), Seocho-gu (1.8%), Gangnam, Yongsan, Dongdaemun-gu (0.7%), and Gangseo-gu (0.3%) saw increases compared to the previous month.

In contrast, the average jeonse deposit for two- and three-room units (multi-family, multi-household, and row houses with 85 to 100㎡) rose about 5.0% (12.67 million KRW) to 264.9 million KRW in September.

The number of jeonse and monthly rental transactions for detached (multi-family), multi-household, and row houses in Seoul in September was 14,150, down 20.3% from the previous month. The number of sales transactions also decreased by 7.0% (355 cases) to 4,714 (749 detached/multi-family and 3,965 row/multi-household) compared to the previous month.

A Dabang official analyzed, "The overall decline in transactions was influenced by the market slowdown due to the government's strengthened real estate regulations and the Chuseok holiday in September."

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