Seoul Apartment Sales Prices Turn Upward in April... Jeonse Prices Continue to Rise Over 1%

Actual Transaction Prices for Sales Up 12.8% Over the Past Year
Northeastern Seoul Registers Highest Cumulative Growth January-April
April Jeonse Actual Transaction Prices Up 10.5% Year-on-Year

Amid lending regulations, demand from genuine homebuyers has concentrated on mid- to lower-priced apartments, leading to a turnaround in the Seoul apartment sales transaction price index in April. The actual transaction prices for jeonse (long-term lease contracts) also continued to rise by over 1%, resulting in simultaneous increases in both sales and jeonse prices. In the rental market, the proportion of tenants opting for contract renewals or monthly rent over new jeonse contracts has increased.

Property listing information posted on a real estate agency in Gangnam-gu, Seoul on the 8th. Photo by Yonhap News

On June 18, the Seoul Metropolitan Government announced that the Seoul apartment sales transaction price index in April rose by 0.08% compared to the previous month. This represents a 12.86% increase year-on-year.

The transaction price index for April is calculated by the Korea Real Estate Board, analyzing all actual transaction data from contracts signed between April 1 and April 30 and reported within 30 days of the contract date in accordance with the Act on Report of Real Estate Transactions, excluding canceled contracts.

Korea Real Estate Board Apartment Actual Transaction Price Index, Apartment, Regional Sales Index. Seoul City

The average actual sales price for apartments increased from 14,563,000 won per square meter in March to 16,394,000 won per square meter in April, a rise of 12.6% from the previous month. Based on an exclusive area of 84 square meters, the average transaction price increased from 1,223,290,000 won to 1,377,100,000 won, an increase of approximately 154,000,000 won.

By residential region, prices rose in the northeastern, northwestern, and southwestern areas of Seoul. In particular, the northeastern region—including Gangbuk, Dobong, Nowon, Seongbuk, and Seongdong Districts—saw the highest rate of increase at 0.61%. Cumulative apartment sales transaction prices during April 1-4 recorded significant increases in the northeastern region (4.6%), southwestern region (4.4%), and northwestern region (3.0%).

An official from the city explained, "This phenomenon is analyzed as a result of genuine demand being concentrated on mid- to lower-priced apartments, where the burden of funding is relatively low due to lending restrictions."

Seoul Apartment Jeonse Transaction Prices in April Rose 1.14% from the Previous Month

In April, the actual transaction prices for apartment jeonse contracts rose by 1.14% compared to the previous month. By region, the city center area—Jongno, Jung, and Yongsan Districts—recorded the highest increase at 3.32% compared to the previous month. Following the trend in sales prices, jeonse prices also rose in the northeastern, northwestern, and southwestern regions.

The jeonse transaction price index for April was calculated based on contracts signed in April that were registered and reported within 30 days.

By size, all categories except for very small apartments (exclusive area of 40 square meters or less) saw an increase. Large apartments with an exclusive area over 135 square meters recorded the highest growth at 1.50%.

Seoul Apartment Transactions in May Down 15.2% from Previous Month

As of May 15, the number of apartment transactions in Seoul stood at 7,282, a decrease of 15.2% compared to the previous month. However, the city added, "Given that real estate transaction reports can be filed within 30 days of the contract date, and that reporting of May contracts will continue until the end of June, the transaction volume may increase further going forward."

As of the 15th, Ministry of Land, Infrastructure and Transport's Real Transaction Price Disclosure System. Based on the contract date, excluding canceled transactions. Transaction volume figures may vary depending on the search time. Last month's transaction volume may change later due to the reporting deadline not yet reached. Seoul Metropolitan Government

By transaction value, the share of transactions under 1.5 billion won last month was 76.4%, up 0.4 percentage points from the previous month. Due to the strengthened lending regulations under the October 15 policy, the share of transactions under 1.5 billion won had recently exceeded 80%. However, with the end of the temporary exemption for heavy capital gains tax on multiple-homeowners approaching, transactions of higher-priced homes increased, causing the share of transactions under 1.5 billion won to decline in April and May compared to the beginning of the year.

By district, Nowon District (760 transactions), Guro District, and Gangseo District had the highest transaction volumes. In these areas, the proportion of transactions under 1.5 billion won greatly exceeded 90%, indicating that transactions of mid- to lower-priced apartments driven by genuine demand are leading the market.

Share of Jeonse Transactions Has Decreased Since Last December... Proportion of Jeonse Renewals Has Increased

As of the same date, the number of apartment jeonse transactions in Seoul in May was 7,741, down 12.0% from the previous month. The number of monthly rental transactions was 7,429, a decrease of 15.9% compared to the previous month.

The volume of jeonse and monthly rental transactions tends to increase from January to March each year, decrease during the summer, and recover again at the end of the year, reflecting seasonal patterns. The city analyzed that the recent decrease in jeonse and monthly rental transactions was influenced by these seasonal factors.

As of the 15th, Ministry of Land, Infrastructure and Transport's Real Transaction Price Disclosure System. Based on contract date, excluding canceled transactions; transaction volume figures may vary depending on the search timing. Last month's transaction volume may change in the future due to pending reporting deadlines. Seoul Metropolitan Government

Last month, the proportion of apartment jeonse transactions was 51%. Since December of last year, the share of monthly rental transactions has remained around 50%. In particular, the proportion of apartment jeonse transactions dropped sharply from 55.4% in November of last year, right after the announcement of the October 15 policy, to 50% in December. Since the beginning of this year, about half of apartment rental transactions have been monthly rentals.

Last month, the proportion of renewal contracts among jeonse transactions was 53.6%, a high level compared to 43% in the same month last year. The proportion of cases exercising the right to request contract renewal was 50.2%, down from 57.5% a year earlier.

This content was produced with the assistance of AI translation services.