Unstable Seoul Jeonse Market... Price Increase Rate Expands Again

Real Estate 114, Seoul Real Estate Market Trends for the 2nd Week of May

[Asia Economy Reporter Kim Hyemin] The rate of increase in Seoul apartment jeonse prices is gradually widening, showing signs of instability. With a significant reduction in apartment move-in supply and the demand continuing through the final spring moving season, concerns about the decrease in jeonse supply are expanding. The sales market is also continuing its upward trend, centered on the outskirts of Seoul and reconstruction apartments.

According to Real Estate 114 on the 15th, the Seoul apartment sales price in the second week of May rose by 0.11% compared to the previous week. While the increase was only 0.05% in early April, it has since expanded to 0.08% and 0.1%. This week, the increase was 0.09% for general apartments, while reconstruction apartments rose by 0.2%.

In Seoul, all 25 autonomous districts rose again this week following last week. By region, the increases were ▲Nowon (0.37%) ▲Gwanak (0.26%) ▲Guro (0.26%) ▲Gangbuk (0.24%) ▲Gangnam (0.19%) ▲Seodaemun (0.12%) in order. Even after the implementation of the land transaction permit system, Gangnam-gu saw a larger price increase than last week, and although the rise narrowed in Yangcheon and Yeongdeungpo, they still maintained high growth rates. Areas with many mid- to low-priced apartments such as Nowon, Guro, and Gangbuk also continued to show strong apartment price growth.

New towns rose by 0.04% compared to the previous week. Ilsan increased the most at 0.15%, followed by ▲Sanbon (0.12%) ▲Jungdong (0.06%) and Bundang (0.04%). Gyeonggi and Incheon rose by 0.1% compared to the previous week. Real Estate 114 explained, "Due to the development of the 3rd new town, Siheung saw a large increase, and due to transportation development, Incheon and Bucheon in Gyeonggi also continued their upward trend." Siheung rose by as much as 0.26% compared to the previous week, followed by ▲Suwon (0.22%) ▲Incheon (0.17%).

The relatively stable Seoul jeonse market rose by 0.06% compared to the previous week, with the rate of increase expanding. Areas with good access to office facilities and the outskirts of Seoul led the rise. By region, the increases were ▲Gwanak (0.17%) ▲Seodaemun (0.15%) ▲Gangseo (0.13%) ▲Nowon (0.13%) in order. Gyeonggi, Incheon, and new towns rose by 0.06% and 0.02% respectively compared to the previous week, with both regions showing an expanded rate of increase.

Senior Researcher Lim Byungcheol said, "Even after the implementation of the land transaction permit system at the end of last month, the upward trend driven by reconstruction continues, and recently, market expectations are rising as tax reductions on holdings and loan regulations for actual demand are being eased, followed by consideration of transaction tax relief."

He added, "The jeonse market is facing a decrease in move-in supply in the second quarter, and landlords are steadily converting to monthly rent, solidifying the so-called 'jeonse to monthly rent' phenomenon. Especially in Seoul, large-scale relocations of some reconstruction complexes are expected in the second half of the year, so concerns about jeonse price increases due to the decrease in jeonse supply are expected to grow even more."

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