Seoul Apartment Sale and Jeonse Prices Show Clear 'Polarization by Size'

Price Gap Under 60㎡ Hits Minimum in 2 Years... Over 85㎡ Sees Maximum
Smaller Units Experience Larger Price Drops and Slower Recovery Compared to Larger Ones

Last month, the gap between sales prices and jeonse prices for small apartments in Seoul with an exclusive area of 60㎡ or less recorded the smallest difference in two years. In contrast, during the same period, the gap for large apartments exceeding 85㎡ widened to its maximum. This polarization phenomenon, where the recovery speed of sales and jeonse prices differs depending on the area, is becoming more pronounced.

According to real estate R114 price statistics on the 6th, the average sales price of apartments in Seoul last month was 1,293.54 million KRW, and the average jeonse price was 603.44 million KRW. The difference between sales and jeonse prices was 690.10 million KRW, which has been on a downward trend since it reached 696.36 million KRW in May last year.

Among these, for small apartments of 60㎡ or less, the average sales price and jeonse price difference in Seoul last month was 452.71 million KRW. The sales price was 848.62 million KRW, and the jeonse price was 395.91 million KRW. This is the smallest gap in 2 years and 1 month since June 2021, when the difference was 450.17 million KRW.

On the other hand, for apartments exceeding 85㎡, the sales-jeonse price gap widened to the largest in the past two years. Last month, the difference between the average sales price (1,979.13 million KRW) and the average jeonse price (926.48 million KRW) reached 1,052.65 million KRW. This gap is about 110 million KRW wider than in July 2021 (942.14 million KRW).

This appears to be because, amid the continued decline in jeonse prices since last year, the recovery speed of sales and jeonse prices differs depending on the apartment's exclusive area.

According to real estate R114 statistics, apartment prices for 60㎡ or less fell by 5.59% last year. The prices of small apartments, which surged rapidly in 2020-2021 due to concentrated purchases by so-called 'young leverage buyers,' plunged again last year due to the impact of interest rate hikes.

In contrast, apartment prices exceeding 85㎡ rose by 0.37%. It is interpreted that the sales price of apartments exceeding 1.5 billion KRW showed little fluctuation due to loan regulation barriers.

Yeogyeonghee, senior researcher at real estate R114, said, "In the second half of the year, about 18,000 apartment units are waiting to move in, which is about 3,000 more than in the first half, so jeonse prices may temporarily fall further depending on the region," adding, "Changes in the sales-jeonse price gap will also depend on whether the sales price continues to rise after August."

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