June Seoul Apartment Jeonse Price Increase Surpasses 2020 Jeonse Crisis... Monthly Rent Hits Record High [Real Estate A to Z]

Korea Real Estate Board Releases June Housing Price Trend Survey

Seoul Sees 'Triple Rally' in Sale, Jeonse, and Monthly Rent Prices

Last month, apartment jeonse (lump-sum lease) prices in Seoul recorded their largest rise in 12 years and 8 months. The cumulative increase in the first half of this year reached 4.99%, already surpassing last year's annual gain of 3.77%. Monthly rents also hit a new high only a month after setting the previous record, marking the highest increase since relevant statistics were first published.

Change Rate of Sale, Jeonse, and Monthly Rent Price Indices in June. Korea Real Estate Board

According to the June Housing Price Trend Survey released by the Korea Real Estate Board on the 15th, the jeonse prices for apartments in Seoul rose by 1.37% from the previous month. This is the highest monthly increase since October 2013 (1.57%), exceeding even the sharp spike of December 2020 (0.96%) when the lease law reforms triggered a severe jeonse shortage. The cumulative increase for the first half of this year was the highest since 2015 (5.16%) in eleven years.

Jeonse prices for Seoul apartments rose 0.58% in January this year, then slowed to a 0.41% increase in February. The growth rate then accelerated for four consecutive months: 0.56% in March, 0.82% in April, 1.15% in May, and 1.37% in June. This June, the rise in apartment jeonse prices in Seoul outpaced the increase in apartment sale prices, which stood at 1.21%.

The increase in apartment jeonse prices was seen across the entire Seoul Metropolitan Area. In June, jeonse prices for apartments in the Seoul Metropolitan Area rose by 0.89%, up from 0.78% in May. In Gyeonggi Province and Incheon, the increases were 0.74% and 0.42%, respectively. Nationwide, apartment jeonse prices rose 0.49%, surpassing the apartment sales price growth rate of 0.40% during the same period.

In Seoul, rising jeonse prices were not limited to the Gangnam area; prices also surged for lower-priced apartments and large complexes in the northeastern districts. In comprehensive housing statistics—which include apartments, multi-family, and detached houses—Seongdong District posted the highest monthly increase among Seoul’s 25 districts at 2.08%. Nowon District followed with 1.78%, Dobong District with 1.56%, and Seongbuk District with 1.50%. In Gangnam, Songpa District rose by 1.53% and Gangdong District by 1.24%.

Distinct increases in jeonse prices were also observed in Dongtan District, Hwaseong and the city of Guri—both newly designated regulated zones in Gyeonggi Province this month. In June, jeonse prices for homes in Dongtan District jumped 2.31%, far exceeding the Gyeonggi Province average of 0.58%. In Guri, prices rose 1.16%, mostly in Inchang-dong and Sutaek-dong. In Dongtan District, home sale prices surged by 6.81%, and monthly rents increased by 1.29%. The cumulative increase in Dongtan apartment prices during the first half of this year reached 11.38%, marking the only double-digit figure among all city and county jurisdictions nationwide.

Seoul 25 Autonomous Districts Comprehensive Housing (Apartments, Multi-family Houses, Detached Houses) Standard Sale, Jeonse, Monthly Rent Price Index Change Rate. Korea Real Estate Board

In Seoul, a 'triple rally' continued as sale, jeonse, and monthly rent prices all posted increasing gains. In June, monthly rents for Seoul apartments rose 1.15%, a 0.20 percentage point increase over May’s 0.95%. For all housing types, Seoul’s monthly rent price rose 0.96%. Both were the highest since statistics began in June 2015, surpassing the previous month's records after just one month. By district, under the comprehensive housing index, Seongdong led with a 1.77% increase in monthly rents, followed by Nowon (1.55%), Songpa (1.48%), and Seongbuk (1.46%).

Demand for both jeonse and monthly rent properties also grew. The jeonse supply-demand index for the Seoul Metropolitan Area rose from 107.6 in May to 110.2 in June, while the monthly rent supply-demand index increased from 107.4 to 109.1. A supply-demand index above 100 indicates that there are more tenants seeking properties than landlords offering them.

In June, nationwide housing prices rose 0.33% for sales and 0.38% each for jeonse and monthly rent. In Seoul, sale prices increased by 1.03%, jeonse by 1.08%, and monthly rent by 0.96%. The Korea Real Estate Board stated, "Prices continued to rise in complexes and areas with high development expectations and popularity in Seoul and the metropolitan area," adding, "Sales prices increased mainly in reconstruction projects, large complexes, and those near subway stations, while jeonse and monthly rent prices rose mainly in complexes with favorable residential environments."

Outside the metropolitan area, Ulsan stood out for its price gains. While sale prices in the five major metropolitan cities averaged a 0.05% decline, Ulsan recorded a 0.31% increase and saw jeonse and monthly rents rise by 0.45% and 0.44%, respectively. The Korea Real Estate Board explained that jeonse prices in Ulsan rose especially in large complexes and major residential areas in Bukgu Maegok-dong and Cheongok-dong, as well as Namgu Sinjeong-dong and Yaeum-dong. Uljugun Beomseo-eup and Onyang-eup, Junggu Ujeong-dong and Yugok-dong, and Donggu Seobu-dong and Jeonha-dong also saw increases.

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