Seoul Apartment Jeonse Prices See Sharpest Weekly Rise Since 2019

Korea Real Estate Board’s Apartment Price Trends for the Third Week of April

An apartment viewed from Lotte World Tower in Songpa-gu, Seoul. Photo by Yonhap News

The upward trend in apartment jeonse prices in parts of Seoul and Gyeonggi Province is drawing attention. With steady demand and a shortage of available listings, prices are being pushed upward. As it is difficult to resolve the supply shortage in the short term, the market expects this upward trend to continue for some time.

According to the weekly apartment price trends for the third week of April (as of April 20) released by Korea Real Estate Board on April 23, jeonse prices in Seoul rose by 0.22% compared to the previous week. This is the highest weekly increase in about six years and four months since the 0.23% rise recorded in late December 2019. Since a 0.12% increase compared to the previous week was recorded on March 9, the pace of increases has steadily accelerated. The cumulative increase in Seoul's jeonse prices over the 15 weeks so far this year stands at 2.17%.

Seongbuk-gu and Songpa-gu each posted a 0.39% increase from the previous week, marking the steepest rise in Seoul. Gwangjin-gu (0.35%), Nowon-gu (0.32%), and Gangbuk-gu (0.30%) also saw significant increases. Notably, Songpa-gu had shown a downward trend as recently as February this year, but the situation reversed in less than two months.

Park Won-gap, real estate expert at KB Kookmin Bank, explained, "The continued decrease in available units and the ongoing shortage of listings are driving up jeonse prices. The implementation of two major leasehold laws has led to more tenants exercising their contract renewal rights, and various mandatory residency requirements have been strengthened, resulting in fewer listings circulating in the jeonse market. This is a source of instability."

In Gyeonggi Province, Gwangmyeong recorded the highest increase, rising by 0.48%. As Gwangmyeong is considered part of the Seoul metropolitan living area, demand has been concentrated there. Significant increases were also recorded in Giheung-gu, Yongin (0.30%) and Dongan-gu, Anyang (0.27%). The Korea Real Estate Board noted, "With insufficient listings relative to jeonse demand, there has been a steady stream of inquiries for units in complexes with favorable locations, such as those near subway stations or within good school districts, leading to rising contracts and an overall upward trend in Seoul."

Data from real estate platform Asil shows there were 15,307 jeonse listings in Seoul as of the reporting date, about 34% fewer than at the beginning of this year. In Gyeonggi Province, the number of available listings in Gwangmyeong dropped by more than 90% over the same period. Ham Young-jin, Head of Research Lab at Woori Bank, commented, "With jeonse listings steadily declining, the conversion to monthly rentals and stricter lending regulations are driving rental prices higher. In addition, the number of housing completions this year is lower than last year, so the upward trend in jeonse prices is expected to continue for the time being."

The apartment sales price index in Seoul also saw a larger increase. It rose by 0.15% compared to the previous week, up from the 0.10% increase recorded a week earlier. In Songpa-gu, prices rose by 0.7%, reversing the downward trend after nine weeks. Gangnam-gu (-0.06%) and Seocho-gu (-0.03%) continued their declines for about two months. Seongbuk-gu (0.27%), Gangbuk-gu (0.24%), and Dongdaemun-gu (0.25%) saw relatively larger increases.

The Korea Real Estate Board explained, "While some regions are holding steady and adopting a wait-and-see approach, there is also a concentration of demand and upward transactions in complexes with favorable residential conditions, resulting in a mixed market across the city."

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