Seoul Jeonse Prices Rise for 5 Months, Matching 5-Year Increase Span

[Asia Economy Reporter Kim Yuri] The median jeonse price for apartments in Seoul has risen by about 100 million KRW over the five months since the new lease law was implemented. This increase is comparable to the rise seen over the approximately five years prior to the law's enforcement. The surge in prices is due to a significant reduction in supply as more tenants choose to extend their leases for an additional two years in existing homes, and new listings reflecting four years' worth of deposit increases.

According to the monthly KB Housing Price Trend report by KB Kookmin Bank's Real Estate Live On on the 6th, the median jeonse price for Seoul apartments last month was 567.02 million KRW, up 5.2% (27.93 million KRW) from 539.09 million KRW the previous month. The median price refers to the price positioned in the middle when prices are simply arranged in order. The median jeonse price for Seoul apartments rose from 469.31 million KRW in July last year, just before the new lease law took effect, to 567.02 million KRW last month, an increase of 97.71 million KRW over five months. This is comparable to the increase over about five years before the law was enacted. From November 2015, when the median jeonse price was 372.10 million KRW, to July last year, it rose by 97.21 million KRW over four years and eight months.

The jeonse price per square meter for Seoul apartments has increased by 905,000 KRW over the past five months, equivalent to about 2.985 million KRW per 3.3㎡. Applying the price per square meter to an apartment with an exclusive area of 85.3㎡, slightly larger than the standard national housing size, results in a jeonse price of 567.02 million KRW, matching the median jeonse price. Based on an 85.3㎡ apartment, Songpa-gu showed the highest increase rate over five months at 21.2% (120.22 million KRW). Geumcheon-gu (20.6%, 67.12 million KRW) and Eunpyeong-gu (20.4%, 74.50 million KRW) also saw increases exceeding 20%. Seongdong-gu, Gangdong-gu, Dobong-gu, Gwangjin-gu, Gangseo-gu, Dongdaemun-gu, and Gangnam-gu recorded growth rates higher than the Seoul average of 15.8%.

As of last month, the most expensive area for jeonse prices was Gangnam-gu, where an average of 965.12 million KRW was required to rent an 85.3㎡ apartment. Seocho-gu followed with 862.41 million KRW. The cheapest area was Dobong-gu, where the average jeonse price for an 85.3㎡ apartment was 368.22 million KRW.

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