Apartment jeonse prices in the Seoul Gangnam and Seocho areas, as well as in Gyeonggi's Gwacheon, have increased by over 100 million won in the last two years. The supply of apartments for jeonse in the Seoul market is rapidly decreasing, leading to forecasts that jeonse prices will continue to rise for the time being.
According to the real estate information platform Ziptos on the 18th, Gyeonggi's Gwacheon was identified as the area with the highest increase, with an average actual transaction jeonse price for apartments between 60 and 85 square meters at about 850 million won, an increase of approximately 154.5 million won compared to the first half of 2023 (around 700 million won).
Next is Seoul's Seocho District, which rose from about 870 million won to approximately 990 million won, an increase of 117.17 million won.
Following that are Seoul's Gangnam District (110.81 million won), Mapo District (95.29 million won), Dongjak District (77.88 million won), Gwangjin District (77.12 million won), Yongsan District (75.22 million won), Seongdong District (72.03 million won), and Seodaemun District (69.06 million won).
In terms of price increase rates, Gyeonggi's Gwacheon (21.9%), Yangju (19.3%), Incheon Jung District (19.0%), Gyeonggi's Guri (17.3%), and Hwaseong (16.6%) ranked highest.
The number of jeonse listings in the Seoul metropolitan area is also rapidly decreasing. According to the real estate platform Asil, as of July 31 this year, there were approximately 49,300 jeonse listings in the metropolitan area. This represents a decrease of about 10% compared to the previous month on June 30.
In Gyeonggi, the number fell from about 24,700 to approximately 21,800, a decrease of about 12%. In Incheon, it dropped from over 5,100 to around 4,700, about 9%, while in Seoul, it fell from 24,800 to 22,800, a decrease of about 8%.
The number of dwellings available for occupancy in the metropolitan area is also on the decline. According to the real estate platform Zigbang, the number of dwellings available for occupancy in the metropolitan area has decreased from about 170,000 in 2023 to approximately 150,000 last year, and is expected to decline further to about 113,000 this year.
The government's stringent real estate loan regulations from last month have also been analyzed as affecting the decrease in jeonse listings. On June 27, the government announced the 6.27 measures, limiting residential mortgage loans in the metropolitan area to 600 million won and making it mandatory to report new residence within six months.
The real estate industry has evaluated that the gap investment, which uses jeonse deposits to conduct transactions, has been blocked, and tenants are opting to extend existing jeonse contracts instead of purchasing, leading to a reduction in jeonse listings.
As the decrease in listings accelerates in the metropolitan jeonse market, prices are expected to continue rising.
Cho Young-gwang, a big data researcher at Daewoo E&C, noted, "Both newly built and pre-owned high-quality jeonse listings in Seoul and the metropolitan area are seeing prices rise as supply decreases. Unless the government takes special measures, the price increase due to the 'jeonse cliff' will likely strengthen."