Seoul Apartment Jeonse Prices Rose by 23.9 Million Won Last Month... Record High Increase

Photo by Moon Honam munonam@

[Asia Economy Reporter Kim Yuri] Last month, the average jeonse price of apartments in Seoul rose by nearly 24 million KRW. This amount exceeds the annual salary of a worker earning the minimum wage this year. The surge is a result of supply failing to meet demand due to a shortage of jeonse listings.

According to the KB Kookmin Bank Live On Monthly KB Housing Price Trend report on the 2nd, the average jeonse price of apartments in Seoul last month was 560.69 million KRW, up 23.9 million KRW from 536.77 million KRW the previous month. This is the largest increase in 9 years and 5 months since statistics began in June 2011.

The increase surpasses 21.54 million KRW, which is the annualized amount of this year’s minimum wage of 8,590 KRW per hour. The market views the rapid rise in jeonse prices as a consequence of the deepening shortage of jeonse listings following the introduction of the contract renewal request right and the rent ceiling system for jeonse and monthly rent.

Since the implementation of the new lease law, the average jeonse price of apartments in Seoul has surged by 61.46 million KRW over four months until last month. During this period, Seoul’s jeonse prices have sharply increased by 10.89 million KRW in August, 19.71 million KRW in October, and 23.9 million KRW in November, excluding September. Since the start of statistics, the only other month with a monthly jeonse price increase exceeding 10 million KRW before August was January 2016 (19.41 million KRW).

Accordingly, the cumulative increase in the average jeonse price of apartments in Seoul this year has expanded to 86.32 million KRW. The increase over the four months from August to November, after the new lease law took effect, accounts for 61.46 million KRW, or 71.2% of the total increase.

Last month, the average jeonse price per square meter for apartments in Seoul also rose by 284,000 KRW. Converted to 3.3 square meters, the average is 937,000 KRW. Applying the average jeonse price per square meter to an apartment slightly larger than the national housing standard size, 86.7㎡ (exclusive area), results in 560.68 million KRW, which aligns with the average jeonse price.

In Seoul, the average cost to secure an 86.7㎡ apartment was highest in Gangnam-gu at 949.51 million KRW. The cheapest area for jeonse prices was Dobong-gu, where the average cost for the same size apartment was 362.39 million KRW. Besides Dobong-gu, only Geumcheon-gu (379.68 million KRW), Nowon-gu (386.68 million KRW), and Jungnang-gu (395.39 million KRW) had average prices below 400 million KRW.

This rapid rise in jeonse prices is occurring comprehensively across the metropolitan area and provinces. The average jeonse price of apartments in Gyeonggi Province last month was 310.66 million KRW, up 15.45 million KRW from the previous month, surpassing 300 million KRW for the first time since the survey began. The increase in apartment jeonse prices in Gyeonggi over the recent four months amounts to 40.97 million KRW, accounting for 72.6% of the total increase (56.31 million KRW) up to November this year.

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