Last month, the number of jeonse apartment transactions in Seoul fell to the lowest level in 6 years and 10 months. Tougher regulations and a shortage of new apartment supply overlapped to drive the decline.
According to the Seoul Real Estate Information Plaza on the 31st, last month's number of jeonse apartment transactions in Seoul was 9,152. This is the lowest transaction volume in 6 years and 10 months since 8,920 in Apr. 2019. Regulations such as measures targeting multi-homeowners and stronger primary residence requirements have sharply reduced jeonse listings, and a drop in new apartment supply is cited as a main reason.
According to real estate big data firm Asil, as of the 27th, Seoul had 16,788 jeonse listings. That is about a 27.2% decrease from 23,060 on Jan. 1, the steepest drop among the 17 provinces and metropolitan cities nationwide.
Nowon District, where listings fell 65.8%, saw the biggest decline among Seoul's 25 districts, followed by Geumcheon District (-64.1%), Jungnang District (-60.9%), and Guro District (-60.2%). Gangseo District (-32.8%) and Eunpyeong District (-31.6%) also recorded declines of more than 30%. Yongsan District showed little change, from 468 on Jan. 1 to 466 on Mar. 27.
Meanwhile, as Seoul's jeonse crunch worsens, an "exodus from Seoul" is accelerating, centered on Gyeonggi areas near the city.
According to data from the Korea Real Estate Board (REB), out of a total of 13,934 apartment purchase transactions in Gyeonggi Province in Jan., 2,137—or 15.3%—were transactions by Seoul residents. That is up from a monthly average of 13.3% last year. By area, apartment purchases by Seoul residents were particularly high in border districts with Seoul such as Hanam (39%), Gwangmyeong (38.2%), Guri (26.6%), Gimpo (26.6%), and Uijeongbu (26.5%).
An industry expert said, "Due to real estate regulations and supply shortages, Seoul's jeonse crunch has reached a severe level, accelerating a shift in demand to nearby Gyeonggi areas," adding, "The strength of these areas, which offer not only access to Seoul but also price competitiveness, is expected to continue for the time being."