Seoul Apartment Jeonse Prices Soar Higher as Growth Accelerates

Korea Real Estate Board's Weekly Apartment Price Trends for the Third Week of May

The upward trend in Seoul apartment jeonse prices continues. This is interpreted as a result of ongoing supply-demand imbalances due to a shortage of listings, combined with avoidance of non-apartment housing and a shift to monthly rentals. In the market, some believe that, with the government having announced a tax reform, there is a greater possibility of policy changes, and thus, many are choosing to remain in the rental market and observe institutional changes before making purchase decisions.

According to the weekly apartment price trend announced by Korea Real Estate Board on May 21, jeonse prices for Seoul apartments rose by 0.29% compared to the previous week. Last week, prices increased by 0.28%, marking the largest weekly increase since the first week of November 2015, and the rate of increase has grown further in just one week. This is the highest weekly increase since the first week of November 2015, when the rate stood at 0.31%.

While all 25 districts of Seoul continue to see a rise, there are regional differences. Of the 25 districts, 14 saw higher jeonse price growth rates than the previous week. Songpa District recorded the highest rate, rising 0.51% from the previous week. Jeonse prices for Songpa District apartments had been declining as recently as January and February this year, but since turning upward in March, the increase has accelerated. The cumulative increase over the past four weeks now exceeds 2%. For example, for the 84-square-meter Jamsil L’sens apartment in Songpa, jeonse contracts were being signed in the 1.2 billion won range until last month, but this month, transactions exceeding 1.5 billion won have begun to appear.

In Seongdong District, jeonse prices rose by 0.49%, mainly in large complexes such as Hawangsimni and Oksu-dong. On May 14, the 59-square-meter Centras apartment in Seongdong was contracted for 900 million won, which is 100 million won higher than a month earlier. The Haengdang Daerim apartment complex in Seongdong, with over 3,000 units, saw jeonse contracts in the mid-to-high 500 million won range until last month, but new listings are now appearing at around 620 million to 630 million won.

Seongbuk District rose by 0.47%, while Gwangjin District and Dobong District each increased by 0.42%, indicating relatively large rises. Gwangmyeong, a city considered part of the Seoul metropolitan area, rose by 0.72% week-on-week. The Korea Real Estate Board stated, "Overall, demand for rentals remains steady, and inquiries for rentals are increasing, especially in large complexes and near subway stations with good residential conditions, leading to more contracts at higher prices. This is driving a general upward trend in Seoul."

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The primary reason for the rise in jeonse prices is cited as a shortage of listings. According to the data provider Asil, as of this day, there are 17,369 Seoul apartment jeonse listings, about 10,000 fewer than the same period a year ago. In May 2025, there were 30,000 listings, and in 2024, there were over 40,000, meaning current supply is less than half of previous years. The industry attributes this to a sharp decline in new apartment supply and existing multi-homeowners converting rental listings to sales.

Amid ongoing avoidance of non-apartment housing such as multiplex and villa units due to past jeonse scams, combined with loan regulations and low interest rates, landlords are increasingly switching to monthly or semi-jeonse rentals, further reducing jeonse supply. Additionally, as the government is expected to implement tax reforms after the local elections, even prospective homebuyers without property are choosing to rent on a jeonse basis for now, planning to make final decisions after observing institutional changes.

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