"Two years ago, the average jeonse price for 84-square-meter exclusive-area apartments around Gangseo District in Seoul was in the 500 million won range, but now listings have dried up and the going rate has risen to the 600 million to 700 million won range. Instead, there has been a big increase in deposit-based monthly rent (banjeonse) transactions that convert 400,000 won in monthly rent per 100 million won of deposit." (Head of real estate brokerage corporation A in Seoul's Gangseo District.)
"I signed a monthly rent lease four years ago and extended it for two more years on the same terms, but I recently got a call from the landlord asking to raise the rent and sign a new contract." (Resident B in Seoul's Yeongdeungpo District)
As jeonse listings for Seoul apartments are locked up and a shortage is expected to persist, renters are heaving deeper sighs.
According to real estate platform Asil on the 25th, as of the 23rd of this month there were 24,759 jeonse listings for Seoul apartments. That is a sharp drop of about 21.1% compared with 31,397 jeonse listings on Oct. 23 last year.
Seoul apartment jeonse prices have also risen for two consecutive years. According to the "Status of average apartment jeonse amounts based on actual transactions from 2022 to 2025" submitted to Democratic Party of Korea lawmaker Lee Yeon-hee by the Ministry of Land, Infrastructure and Transport, the average jeonse price for Seoul apartments fell from 537.1 million won in 2022 to 535.8 million won in 2023, then rose for two consecutive years to 574.8 million won last year and 590.4 million won this year.
Real estate experts said the government's stringent lending regulations coupled with a shortage of new dwellings supply are leading to fewer jeonse listings and higher prices.
Through the June 27 measures, the government reduced the cap on the Stepping Stone jeonse loan used by young people starting June 28, lowering the limit for youth from 200 million won to 150 million won and for newlyweds (Seoul metropolitan area) from 300 million won to 250 million won. It also lowered the jeonse loan guarantee ratio in the Seoul metropolitan area from 90% to 80%. In the housing market stabilization measures released on Oct. 15 (the Oct. 15 measures), it required inclusion of interest repayments on jeonse loans taken by owners of one dwelling—which had been excluded—in the calculation of the debt service ratio (DSR).
Sim Hyeong-seok, head of the Udabang Research Institute and professor at IAU in the U.S., said, "Due to the aftermath of jeonse fraud centered on non-apartments such as multiplex and multi-home dwellings in recent years, demand in the jeonse market has concentrated in apartments," adding, "As the eight-year mandatory rental period under the 2017–2018 registered rental business activation measures expires from this year into next year, jeonse prices will rise further."
Nam Hyeok-u at Woori Bank's Real Estate Research Institute said, "With policies being implemented that limit inflows of jeonse demand, banjeonse listings will increase, and the phenomenon of 'jeonse turning into monthly rent' will accelerate," adding, "In Seoul, a full-fledged move into a supply drought period has begun, and with the Oct. 15 measures making leverage investment (gap investment) using jeonse deposits impossible, upward pressure on jeonse will grow further going forward."
The shortage of Seoul apartment jeonse listings is feeding into higher monthly rents. According to the Korea Real Estate Board (KREB), last month the average monthly rent for Seoul apartments (based on sample households excluding deposits) was 1,443,000 won, a record high. That is up 7.4% compared with 1,343,000 won in January this year.
Seoul's apartment monthly rent index is also at a record high. According to KB Real Estate, in September the Seoul apartment monthly rent index was 129.7, the highest level since related statistics began in December 2015.
A real estate industry official said, "The government is constricting the jeonse market by raising the intensity of jeonse loan regulations, prompting conversions from jeonse to monthly rent," adding, "If a future rate cut lowers the lending rate on jeonse loans, demand that had flocked to monthly rent could move back to jeonse. In particular, jeonse prices for Seoul apartments, where the number of move-ins is low, will rise steeply."
Professor Sim Hyeong-seok said, "Seoul's apartment jeonse market has few listings, and owners will sharply raise jeonse prices on the expectation that the right to request contract renewal could be extended up to nine years," adding, "Ultimately, this will lead to higher housing burdens for jeonse and monthly rent tenants."