"No One Wants to Move In?" Lament as Maple Xi Jeonse Prices Plunge by Over 1 Billion Won in Two Months

Maple Xi 59m² Jeonse Drops to 1 Billion Won Range
Lowest Jeonse Asking Price Now at 995 Million Won
Landlords Forced to Revise Financial Plans as Conditional Jeonse Loans Blocked
Experts Predict Increase in Semi-Jeonse Listings in the Future

The Jeonse prices at the Maple Xi complex in Jamwon-dong, Seocho-gu, Seoul, have been plummeting as a direct result of the 6·27 loan regulations. Due to the tightened lending rules, landlords who are unable to pay off the remaining balance upon move-in are forced to lower Jeonse prices in order to attract tenants who can pay the deposit in cash. Experts predict that this decline in Jeonse prices will be a temporary phenomenon.

A panoramic view of the Maple Xi complex in Jamwon-dong, Seocho-gu, Seoul. Provided by GS Construction

According to the Ministry of Land, Infrastructure and Transport’s actual transaction price system and other sources on July 24, since the announcement of the loan regulations on June 27, the Jeonse price for a 59-square-meter unit at Maple Xi dropped to 1.055 billion won (transaction on July 18). In late May to early June, Jeonse for the same size unit was traded in the 1.2 billion won range. Nearby real estate agencies are actively promoting listings with phrases like “monthly rent available from 100 million won,” “long-term residence possible,” and “no loans,” in an effort to find tenants. The current asking price for the same size Jeonse has fallen to as low as 995 million won. Recently, a Jeonse for an 84-square-meter unit was traded at 1.4 billion won, with the lowest asking price now down to 1.15 billion won.

It is generally common for Jeonse prices in newly occupied complexes to be set low. However, at Maple Xi, despite being a high-priced complex, Jeonse prices have been dropping one after another due to the impact of the loan regulations. In particular, the prohibition of “Jeonse loans conditional on transfer of ownership” under the new rules has had a significant effect. This type of loan is typically used by landlords who have purchased an apartment and need to pay the remaining balance upon move-in by utilizing the tenant’s Jeonse loan. With this loan now blocked, landlords must find tenants who can pay the Jeonse deposit in cash.

The impact of Maple Xi is contributing to the overall decline in Jeonse prices across Seocho-gu. According to the second week of July’s nationwide apartment market trends from KB Real Estate, Jeonse prices in Seoul have risen for 23 consecutive weeks, but Seocho-gu was the only district in Seoul to record a decrease, falling by 0.06%.

In addition to Maple Xi, Jeonse prices are also falling at complexes where the move-in period coincides with the implementation of the loan regulations. For example, at Huigyeong Xi Decencia, which is accepting residents from June 30 to September 1, a 59-square-meter Jeonse contract was signed for 420 million won on July 3. From May to early June, Jeonse transactions for the same size unit ranged from 490 million to 550 million won, but immediately after the loan regulation announcement, Jeonse prices dropped into the 400 million won range. The current asking price for the same size unit starts from the 540 million won range. Nearby real estate agencies are emphasizing features such as “no loans, Jeonse loan available.”

Experts analyze this as a temporary phenomenon caused by an increase in newly supplied units. Kim Hyosun, Chief Real Estate Specialist at NH Nonghyup Bank, said, “For new complexes, it is essential to carefully plan for the final payment. However, recent regulatory changes have introduced variables in the timing of these payments, creating difficulties. As a result, there are more cases of landlords switching to semi-Jeonse arrangements because they cannot find tenants who meet the conditions.” She added, “New complexes in Gangnam have excellent locations, so Jeonse prices are expected to rise sharply again over time.”

Park Wongap, Chief Real Estate Specialist at KB Kookmin Bank, also explained, “Since the overall supply of new apartments in Seoul is not large, it is unlikely that the decline in Jeonse prices in Seocho-gu will spread to other areas.”