Seoul Jeonse Rises 300,000 Won in 5 Years… National Average 960,000 Won, Incheon Also Tops 1 Million Won

Seoul apartment monthly rents (wolse) have risen by over 300,000 won in the past five years, approaching 1.6 million won. According to data submitted by the Ministry of Land, Infrastructure and Transport to Rep. Kang Dae-sik of the National Assembly Land, Infrastructure and Transport Committee on the 7th, the average monthly rent in Seoul rose 27.2% from 1.25 million won in December 2021 to 1.59 million won in June this year. This is the highest figure on record since monthly statistics began. During the same period, Gyeonggi Province rose 18.6% from 970,000 won to 1.15 million won, Incheon rose 20.0% from 850,000 won to 1.02 million won, and the national average increased 18.5% from 810,000 won to 960,000 won.

Apartment jeonse (key money) prices rebounded after a temporary decline due to the aftermath of the benchmark interest rate hikes from 2022 to 2023. The average jeonse price for Seoul apartments fell by about 100 million won from 630 million won in December 2021 to 530 million won at the end of 2023, but recovered to 620 million won by June this year. In Gyeonggi Province and Incheon, jeonse prices also rose by approximately 40 million won and 30 million won, respectively, after hitting their lows in 2023.

Yun Ji-hae, head of the Real Estate R114 research team, pointed out at a debate hosted by Seoul City on the 6th that housing costs in the jeonse and wolse markets rise when the number of households increases faster than the number of homes. Chae Sang-wook, head of Connected Ground, stated that while the government is presenting supply targets, actual construction falls far short of these goals. Critics emphasize that actual construction starts must be backed to make up for the accumulated shortage in supply.