Seoul Jeonse Prices Post Highest Increase in 10 Years

The cumulative jeonse price increase for Seoul apartments reached 7.79% as of the second week of September, the highest level in about a decade since 2015. The surge is the result of rising home prices combined with a shrinking supply of available units. Jeonse contracts for 84-square-meter units are being signed one after another at around 1 billion won even in outlying areas that have traditionally been more affordable.

The upward trend is especially pronounced in the northeastern districts, including Seongbuk, Dongdaemun, and Gangbuk. In these areas, sale and jeonse prices are rising together, pushing jeonse rates to levels comparable to riverside residential neighborhoods such as Mapo, Yongsan, and Seongdong.

In Seongbuk District, which tops Seoul with a cumulative jeonse increase of 12.84%, an 84-square-meter unit at Lotte Castle Classia in Geumeum-dong was newly leased for 1.1 billion won last month. A comparable unit at the nearby Raemian Geumeum Centerpiece is listed at 1.05 billion won. An 84-square-meter unit at Hanyang Sujain Graciel near Cheongnyangni Station in Yongdu-dong, Dongdaemun District, traded for 1 billion won late last month. In Gangbuk District, a comparable unit at Hanwha Forena Mia is being offered at up to 1.2 billion won, while an 84-square-meter unit at Geonyeong 3rd in Junggye-dong, Nowon District, was leased for 910 million won this month.

The jeonse ratio in the northeastern districts averages just 55.8%, but industry analysts say reduced move-in supply and demand concentrated on newly built complexes are driving up the price benchmark.

The government attributed the current jeonse crunch to sluggish construction starts accumulated since 2022 and the resulting sharp drop in move-in housing supply in the capital region. Authorities plan to stabilize the rental market by accelerating housing supply, focusing on short-term measures such as securing purchase-lease housing.