Seoul Jeonse Shortage Worst in 15 Weeks

Jeonse Supply-Demand Index Hits Record High at 110.6

[Asia Economy Reporter Kim Hyemin] Concerns over the Seoul jeonse housing shortage are spreading. The apartment jeonse supply-demand index has risen to its highest level in 15 weeks, indicating a deepening supply-demand imbalance.

According to the weekly apartment price trend report by the Korea Real Estate Board on the 2nd, Seoul's apartment jeonse supply-demand index this week was recorded at 110.6. This is a 0.2-point increase from last week's 110.4, marking the highest level in 15 weeks.

The jeonse supply-demand index indicates the degree of jeonse supply shortage. It is derived by analyzing surveys from member real estate agencies and the number of online listings. With 100 as the baseline, a value above 100 indicates a supply shortage, while below 100 indicates a demand shortage.

Seoul's apartment jeonse supply-demand index exceeded 120 until February this year, then stabilized after the announcement of the 2·4 housing supply plan, dropping to 103.3 in the last week of April. However, due to the reduction of jeonse listings available on the market caused by the three lease laws and overlapping relocation demand from reconstruction and redevelopment in areas like Seocho and Dongjak districts, the supply shortage phenomenon is intensifying again.

By region, the southeastern area, including Seocho-gu and the Gangnam 3 districts, showed instability as the index rose from 114 last week to 114.2 this week. In particular, Seocho-gu is undergoing relocation of about 4,000 households due to reconstruction, resulting in the highest jeonse price increase rate for over a month. The northeastern area, including Nowon-gu where housing prices are rapidly rising, increased by 0.2 points from last week to 114.3.

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