KB Statistics Also Show Larger Increase in 'Jeonse and Sale' Prices... Market Instability Spreads Nationwide

KB Kookmin Bank Weekly Housing Market Trends Announcement
Seoul Jeonse Prices Rise 0.70%, Increasing Growth Rate
Matt Prices Also Up from 0.30% to 0.33%
Shift in Mood from Jeonse Shortage to Sale Market Instability

[Asia Economy Reporter Moon Jiwon] Despite the government's repeated optimism, Seoul apartment sale and jeonse prices are rising rapidly. With signs of instability appearing in the sales market following the jeonse market, concerns are growing that housing stability for ordinary citizens may worsen further.

According to the weekly KB Housing Market Trends released by KB Kookmin Bank Real Estate Live On on the 5th, as of the 2nd, Seoul apartment jeonse prices rose by 0.70%, an increase from the previous week's 0.55%.

The rise was particularly high in Gangseo-gu (0.96%), Gangnam-gu (0.93%), Geumcheon-gu (0.87%), Nowon-gu (0.86%), and Songpa-gu (0.84%), but all other districts also continued to show an upward trend.

Seoul's jeonse price increase rate had been around 0.40~0.50% in recent months, but this week it expanded to 0.70%, indicating that the jeonse shortage caused by low interest rates and the 'Lease 2 Act' is becoming more severe.

In Gyeonggi-do, apartment jeonse prices rose by 0.46% compared to the previous week. Areas attracting attention due to the 'balloon effect' from being non-regulated zones, such as Gimpo (1.21%), Anyang Manan-gu (1.12%), Suwon Yeongtong-gu (1.05%), Gwangju (0.99%), and Anyang Dongan-gu (0.84%), saw significant increases.

In Incheon, apartment jeonse price increase rates expanded from 0.32% to 0.34%. Yeonsu-gu (0.68%), Bupyeong-gu (0.68%), Jung-gu (0.36%), Michuhol-gu (0.28%), and Seo-gu (0.22%) all continued their upward trends.

Minister of Land, Infrastructure and Transport Kim Hyun-mi is attending the comprehensive audit of the Land, Infrastructure and Transport Committee held at the National Assembly in Yeouido, Seoul, on the morning of the 23rd of last month. (Photo by Yonhap News)

As the jeonse shortage spreads, instability in the sales market is also increasing.

Seoul apartment sale prices rose by 0.33% this week, an increase from last week's 0.30%. Eunpyeong-gu (0.72%), Dobong-gu (0.66%), Dongdaemun-gu (0.52%), Gwanak-gu (0.48%), and Guro-gu (0.45%) showed relatively high growth rates.

This is interpreted as demand shifting significantly to mid-to-low priced housing purchases by buyers who could not find a place to live due to rising jeonse prices. The analysis suggests that the judgment is spreading that it is better to buy a mid-to-low priced apartment on the outskirts of Seoul than to pay soaring deposits for jeonse.

Gyeonggi-do showed a 0.37% increase compared to the previous week. Gimpo (1.32%), Anyang Manan-gu (1.11%), Goyang Ilsandong-gu (0.79%), Paju (0.60%), and Suwon Yeongtong-gu (0.60%) rose significantly.

In Incheon (0.15%), sale prices rose in most districts including Jung-gu (0.44%), Bupyeong-gu (0.33%), and Michuhol-gu (0.19%), expanding the increase from last week's 0.06%. Nationwide apartment sale price increases also grew from 0.28% to 0.30%.

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