Seoul jeonse prices surge by 84.2 million won in two years, hitting record high
Seoul apartment jeonse prices have hit an all-time high. The rapid rise in jeonse prices could place a growing burden on homeless tenants looking for housing, drawing attention.
According to the Korea Real Estate Board's September National Housing Price Trend Survey, the average jeonse price for Seoul apartments stood at 641.52 million won, with the median at 565 million won. The average jeonse price rose by 84.2 million won (about 15.1%) over two years from 557.32 million won in September 2024. After surpassing the previous record of 634.243 million won set in January 2022, with 636.628 million won in August, prices set a new record again in September, marking two consecutive months of highs.
Nearly six out of ten jeonse renewals now involve a larger deposit burden, prompting more tenants to stay in their current homes rather than move. According to Seoul city's August apartment jeonse and monthly rent transaction statistics, renewals accounted for 58.9% of jeonse contracts, up 15.2 percentage points from 43.7% in the same month last year. Seoul apartment jeonse transactions in August fell to 7,263, down 18.0% from the previous month and 32.2% from the same month last year. Among renewal contracts, the share exercising the contract renewal request right was 48.7%, down 8.3 percentage points from 57.0% a year earlier. The remaining 51.3% extended their contracts through negotiation with landlords without invoking the renewal right.
The deposit gap between new and renewal contracts is also widening. An analysis of metropolitan-area apartment jeonse transactions from January to June this year by real estate platform Zigbang showed that the deposit difference between new and renewal contracts for 84-square-meter apartments in Seoul grew from 43.75 million won in January to 80 million won in June. Over the same period, new contract deposits rose from 656.25 million won to 700 million won, while renewal deposits increased from 612.5 million won to 620 million won. For 59-square-meter units, the gap more than doubled from 35 million won to 77.5 million won over the same period.
Tenants shunning jeonse are turning to monthly rent instead. According to the Ministry of Land, Infrastructure and Transport, monthly rent accounted for 52.3% of Seoul apartment jeonse and monthly rent transactions from January to August this year. The figure, which includes rent with deposits and half-jeonse contracts, is 8.3 percentage points higher than last year's annual share of 44.0%.
The upward trend in jeonse prices continued into October. According to the Korea Real Estate Board's weekly trends for the second week of October (as of the 12th), Seoul apartment jeonse prices rose 0.18% from the previous week. Seongbuk District rose 0.39%, Nowon 0.38%, Jungnang 0.37%, and Geumcheon 0.28%, while Seocho fell 0.19% and Gangnam 0.12%.
