In Seoul's apartment jeonse market, the price gap between new leases and renewal leases is widening, making the "dual pricing" phenomenon more pronounced.
According to an analysis of actual transaction prices by the Ministry of Land, Infrastructure and Transport on the 5th, the median deposit for new contracts among Seoul jeonse transactions from January to April this year was 585 million won, 55 million won (10.4%) higher than the 530 million won median for renewals.
Since the enforcement of the two key lease laws, renewal increases have been capped at 5%, while prices for new contracts have been set by market supply and demand, effectively splitting the two pricing regimes.
By district, Seocho had the largest gap at 200 million won, while Gangdong and Eunpyeong each showed a 100 million won difference. Songpa had 88 million won, Dongdaemun 75 million won, Seongbuk 60 million won, and Gangnam and Seongdong each around 50 million won.
The differences were also large at individual complexes. In Seocho's Banpozai 85㎡, the renewal contract was signed at 773.41 million won, while the new contract rose to 1.9 billion won, a gap of more than 1.1 billion won. In Songpa's Ricenz 124㎡, the new contract was 2.05 billion won, about 684 million won higher than the renewal.
The usage rate of renewal rights is gradually declining. Overall, it fell from 45.5% in January to 42.2% in April, and for jeonse it dropped from 57.1% to 50.6% over the same period.
Market watchers note the possibility of a larger price shock as tenants who have fully used their renewal rights reenter at market prices. In particular, there are projections that volatility in the jeonse market could grow further between 2026 and 2027, when the first renewal cycle for newly built apartments comes due.