[Jibisshu] Seoul Apartment Jeonse Prices Jump 120 Million Won... Highest Nationwide in 10 Years

Average Jeonse Price of Seoul Apartments in July 615.58 Million KRW
Up 117.24 Million KRW from June (498.34 Million KRW)
Real Estate Agency Reports Sharp Rise After Expanding Apartment Price Sample

[Asia Economy Reporter Kangwook Cho] As the Korea Real Estate Board, the government's official statistical agency, expanded the sample size for apartment price statistics, the average jeonse price of apartments in Seoul in July rose by nearly 120 million KRW in just one month. According to private institutions' data, the nationwide housing jeonse price increase rate over the past year reached the highest level in a decade.

According to the Real Estate Board on the 22nd, the average jeonse price of apartments in Seoul last month was recorded at 615.58 million KRW, an increase of 117.24 million KRW from June's 498.34 million KRW. In the previous Real Estate Board survey, the jeonse price of Seoul apartments had remained in the 400 million KRW range for 3 years and 7 months, from 437.36 million KRW in December 2017 to 498.34 million KRW in June this year. However, after the Real Estate Board began applying a 'sample redesign' (expansion of sample size) from last month to calculate statistics, prices surged within a month.

This figure is close to the number announced by the private institution KB Kookmin Bank's Liv Real Estate. According to the monthly KB Housing Price Trend, the average jeonse price of apartments in Seoul in July was 634.83 million KRW. This is 135.62 million KRW higher than July last year (499.22 million KRW), when the new lease law was implemented. Compared to the increase of 35.68 million KRW (463.54 million → 499.22 million KRW) during the previous year (July 2019 to July 2020), this is 3.8 times higher. It took 2 years and 1 month to rise from 300 million to 400 million KRW, 4 years and 5 months from 400 million to 500 million KRW, but only 8 months to reach from 500 million to 600 million KRW.

It is not only Seoul. The jeonse price increase trend is significant across all regions in the country. According to KB Liv Real Estate's survey, the nationwide housing jeonse price in July rose by 0.9% compared to the previous month. As the autumn moving season approaches, the rate of increase has expanded for three consecutive months since May. In fact, over the one year following the implementation of last year's lease law (August 2020 to July 2021), the nationwide housing jeonse price rose by approximately 10.7%, recording the highest increase rate since 2010-2011 (11.90%) for the same period. The jeonse price of apartments in Seoul in July rose by a remarkable 17.86% compared to the same month last year.

The report analyzed, "As expectations for the expansion of new and existing housing supply decrease, buying demand continues, and the jeonse price increase trend is also ongoing."