Seoul Jeonse Prices Rise Most in 2 Years and 7 Months

Seoul Apartment Sales Up 0.02%·Jeonse Up 0.05%
Mortgage Rate Adjustment, Loan Demand Expected to Rise Before Limit Reduction

When crossing the Banpo Bridge in Seoul, you can see new apartments, old apartments, and apartments under construction all at once in the Sinbanpo area. The new apartments on the left are Acro Riverview Sinbanpo, the low old apartments on the right are Sinbanpo 2nd Complex, and the apartments under construction in the back are the Maple Xi construction site. Photo by Younghan Heo younghan@

In the fourth week of July, the jeonse prices of apartments in Seoul rose by 0.05%, expanding the increase compared to the previous week. According to Real Estate R114 on the 26th, this week's growth rate is the highest weekly increase since the second week of December 2021 (0.06%).

As most areas in Seoul are experiencing a shortage of jeonse listings, the jeonse price change rates in individual autonomous districts have also shown no areas with declines for three consecutive weeks. Despite entering the rainy season and the low season of vacation periods, the demand for summer vacation moves, which can be seen as a precursor to the autumn moving season, is likely to flow in mainly to school districts and preferred areas, so the upward pressure on jeonse prices is expected to continue.

Seoul apartment sale prices rose by 0.02%, slowing down from last week's 0.05%. Reconstruction projects remained flat (0.00%), while general apartments increased by 0.03%. New towns and Gyeonggi and Incheon each rose by 0.01%.

In Seoul, following the previous week, the upward trend continued mainly in small and medium-sized apartments in Mapo and Gangdong districts. By individual areas, the increases were in the order of Mapo (0.07%), Gangdong (0.07%), Guro (0.06%), Gangseo (0.06%), Nowon (0.04%), Gangnam (0.04%), Yongsan (0.03%), and Yeongdeungpo (0.03%). On the other hand, Dobong was the only district among the 25 districts to fall, dropping by -0.05%.

Among new town individual areas, Gwanggyo rose by 0.14%, with Gwanggyo Nature & Hillstate in Iui-dong and Summit Place Gwanggyo increasing by about 10 million to 30 million KRW. Bundang was adjusted upward by 0.01%, with Siheom Hanyang, Siheom Samsung, and Hanshin in Seohyeon-dong rising by 1 million to 2.5 million KRW.

In Gyeonggi and Incheon, Icheon (0.02%), Ansan (0.02%), Incheon (0.02%), and Suwon (0.01%) increased.

The jeonse market expanded its rise for three consecutive weeks. This week, there was not a single area in the metropolitan area where jeonse prices fell. Seoul rose by 0.05%, and new towns, Gyeonggi, and Incheon each increased by 0.01%.

In Seoul's individual areas, the increases were in the order of Mapo (0.13%), Guro (0.13%), Gangseo (0.11%), Gangdong (0.11%), Dobong (0.09%), Nowon (0.09%), and Gwangjin (0.09%). New towns were led by first-generation new towns, with Bundang (0.01%), Ilsan (0.01%), Pyeongchon (0.01%), and Dongtan (0.01%) rising slightly.

In Gyeonggi and Incheon, Uijeongbu (0.03%), Ansan (0.03%), Incheon (0.03%), Suwon (0.02%), Gimpo (0.01%), and Gwangmyeong (0.01%) were adjusted upward.

A Real Estate R114 official explained, "In line with the government's household debt suppression policy, commercial banks have collectively raised mortgage loan interest rates, and some banks have announced additional loan tightening measures restricting refinancing of mortgage loans and loans for multi-homeowners' property purchases."

He added, "This is interpreted as a measure to curb the rapidly increasing loan demand due to the upward trend in apartment sales prices in the metropolitan area, the forecast of house price increases in the second half of the year, and the visibility of base rate cuts. With the upcoming implementation of the second stage of stress DSR in September, it is expected that banks will increasingly review raising loan thresholds, so loan demand is likely to become more active before limits are reduced."