Seoul Apartment Jeonse Prices Rise Again... "Prolonged Jeonse Shortage"

Seoul Apartment Prices Unchanged from Last Week, Up 0.05%

[Asia Economy Reporter Onyu Lim] Seoul apartment jeonse prices have risen again following last week, showing a clear upward trend.

According to Real Estate 114 on the 30th, this week’s Seoul apartment jeonse prices increased by 0.14%, which is 0.01 percentage points higher than last week. The rate of increase expanded in all metropolitan areas including Seoul, new towns, and Gyeonggi·Incheon. Real Estate 114 explained, "The shortage phenomenon, where tenants complain about the lack of jeonse properties, also seems to be prolonged."

Statistics show that this week’s jeonse price increases expanded regardless of region. By area, the largest increases were in ΔNowon (0.31%) ΔGangbuk (0.29%) ΔSongpa (0.26%) ΔGangseo (0.25%) ΔGangnam (0.24%) ΔGangdong (0.24%) ΔGeumcheon (0.22%). In new towns, the increases were ΔGimpo Hangang (0.20%) ΔDongtan (0.19%) ΔWirye (0.18%) ΔPyeongchon (0.16%) ΔIlsan (0.14%). In Gyeonggi·Incheon, the increases were ΔHanam (0.27%) ΔGoyang (0.26%) ΔGwangmyeong (0.25%) ΔGwacheon (0.24%) ΔYongin (0.21%) ΔGunpo (0.20%) ΔSeongnam (0.20%) ΔPaju (0.19%).

Due to the jeonse shortage, the sales market is also firm. The Seoul apartment sales price increase rate remained the same as last week at 0.05%. In Seoul, the increases were ΔGangdong (0.17%) ΔNowon (0.16%) ΔGeumcheon (0.15%) ΔGwanak (0.11%) ΔGuro (0.11%) ΔEunpyeong (0.07%) ΔGangseo (0.06%) ΔSongpa (0.06%). In new towns, the weekly increase in Gimpo Hangang New Town, a non-regulated area with high interest from actual buyers, notably expanded (0.10% → 0.18%). Following that were ΔPyeongchon (0.16%) ΔDongtan (0.15%) ΔIlsan (0.11%) ΔSanbon (0.06%).

Yoon Jihae, Chief Researcher at Real Estate 114, analyzed, "The current market perspective is focused more on jeonse than sales," adding, "As jeonse prices greatly exceed the sales price increases, actual buyers who can no longer endure are increasingly likely to switch to the sales market."