Average Cost of Switching from Jeonse to Sale in Seoul Apartments is 450 Million KRW

[Image source=Yonhap News]

[Asia Economy Reporter Hyungsoo Park] It has been revealed that tenants living in apartments in Seoul under a jeonse lease need an average of about 450 million KRW to switch to homeownership through a "trade-up." This amount has increased 2.7 times compared to when the current government took office.

According to the Seoul apartment price status submitted by the Korea Real Estate Board to Kim Sang-hoon of the People Power Party on the 12th, the difference between the average apartment sale price and jeonse price in Seoul as of the first half of this year (June) was calculated to be 447.48 million KRW.

This means that tenants living under jeonse need about 450 million KRW on average to purchase their current home. Right after the current government took office in June 2017, the amount was around 166.91 million KRW, but it has steadily increased over time.

Among the autonomous districts, Gangnam-gu had the largest difference between sale and jeonse prices, reaching 901.64 million KRW as of June this year. It was followed by Yongsan-gu at 816.25 million KRW, Seocho-gu at 791.22 million KRW, Songpa-gu at 620.48 million KRW, and Seongdong-gu at 619.61 million KRW.

Seodaemun-gu's trade-up cost increased from 89.39 million KRW to 346.99 million KRW. Nowon-gu also rose from 72.52 million KRW to 287.57 million KRW.Guro-gu, which had a trade-up cost of 67.10 million KRW, now requires an additional 256.67 million KRW to purchase a home.

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