Rising Jeonse Prices Push Up Housing Costs... Continued Increase in Mid-Low Priced Apartments in Seoul

[Image source=Yonhap News]

[Asia Economy Reporter Kim Hye-min] The phenomenon of the rental housing shortage since the implementation of the Lease Protection Act at the end of July last year continues to push up the prices of mid- to low-priced apartments in Seoul.

According to the Ministry of Land, Infrastructure and Transport's real transaction price disclosure system on the 24th, Hanshin 84.03㎡ (exclusive area) in Junghwa-dong, Jungnang-gu, Seoul, recorded a new highest price within three days. It was traded for 810 million KRW on the 9th, and then sold for 825 million KRW, 15 million KRW higher, on the 12th.

In Dobong-gu, Chang-dong, Ssangyong 60㎡ (exclusive area) was traded at nearly 74.8 million KRW on the 19th, up about 30 million KRW from 71.9 million KRW on the 5th of last month. Desiang 84.3㎡ (exclusive area) in Sinnae-dong, Jungnang-gu, which was sold for 760 million KRW six months ago, was traded for 857 million KRW on the 19th.

This is also confirmed by indicators. According to Real Estate 114, the apartment sale prices in Seoul in the third week of January rose by 0.12% compared to the previous week, while Dobong-gu, where mid- to low-priced apartments are concentrated, showed a rise of 0.24% during the same period.

Experts say that the phenomenon of the rental housing shortage pushing up the prices of mid- to low-priced apartments in Seoul is continuing into the new year following last year. Kyung-hee Yeo, senior researcher at Real Estate 114, said, "As rental prices rise significantly, sales demand is flowing mainly into mid- to low-priced apartments, which are relatively more accessible," adding, "Most of these buyers are actual users."

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