Since the start of this month, Seocho District in Seoul has seen the largest disappearance of jeonse listings among cities, counties, and districts nationwide. In just one month, more than 1,000 listings vanished. Yeonsu District in Incheon, Ilsandong District in Goyang, Gyeonggi Province, and Seongdong District in Seoul also saw jeonse listings drop by more than 300 in a month.
By contrast, Songpa District in Seoul saw jeonse listings increase by more than 1,000. In Seoul, the imbalance between jeonse supply and demand, with supply lagging demand, is expected to persist for the time being. Because of this, tenants looking for jeonse appear to need to focus on areas where listings are increasing.
According to the real estate big data analysis corporations Real Estate Jiin on the 26th, from Aug. 21 to Sept. 21, jeonse listings in Seocho District, Seoul, fell from 7,754 to 6,732, with 1,022 disappearing in a month. Seocho District recorded the largest drop among cities, counties, and districts nationwide. Next, Yeonsu District in Incheon lost 486 jeonse listings in a month, while Ilsandong District in Goyang, Gyeonggi Province (-371), Seongdong District in Seoul (-346), Hwaseong in Gyeonggi Province (-282), and Seo District in Incheon (-268) also saw listings decline.
On the other hand, some areas saw jeonse supply increase. Songpa District in Seoul added 1,141 jeonse listings in a month, the largest increase nationwide. Also, ▲Gangnam District (596) ▲Gwangmyeong, Gyeonggi Province (387) ▲Bundang District in Seongnam (186) and other areas saw jeonse listings rise.
The market sees the surge and drop in jeonse supply in Seocho and Songpa as influenced by changes in supply tied to the move-in schedules of some large complexes. In Songpa, jeonse supply is increasing around Jamsil Raemian I'Park (Jamrae-a) in Sincheon-dong, which is scheduled for move-in in December. In Gangnam District, jeonse units are coming out at Cheongdam LEEL in Cheongdam-dong, which moves in in November. Some jeonse supply at Jamrae-a and Cheongdam LEEL includes public rental dwellings (long-term jeonse housing1) supplied by the Seoul Housing and Communities Corporation (SH) at 80% of market prices.
However, in Seocho District, there has been no notable jeonse supply since Maple Xi in Jamwon-dong, a large complex of 3,307 households, finished move-ins in August. In Jamwon-dong and Banpo-dong, there is even talk that "if you list in the morning, the contract is signed before lunch."
In the 25 districts of Seoul, a densely populated area, jeonse supply and demand show rising demand and shrinking supply. According to KB Real Estate, last month the jeonse supply-demand index was 151.98. With 100 as the baseline, above 100 means there are more jeonse seekers (tenants), and below 100 means the opposite. The index topping 150 is the first time in 3 years and 10 months since October 2021 (162.25).
Jang So-hee, a senior official at the asset management consulting department of Shinhan Investment & Securities, said, "Around major areas such as Gangnam in Seoul, localized supply-demand swings at large complexes are leading to situations where some areas see more jeonse listings while others see them disappear."
Kim Eun-seon, head of the Big Data Lab at Zigbang, said, "Because the June 27 household debt measures banned gap investments that include jeonse in Seoul and the greater capital area, and because the interest rate cut cycle has lowered the returns on jeonse compared with monthly rent or semi-monthly rent, fewer people are putting jeonse units on the market."