In the Same Neighborhood, One Apartment Costs 2 Billion Won, Another 450 Million... What's Happening in Gangnam?

Average Jeonse Price Drops from 828 Million Won in May to 636 Million Won in August
Emergency Listings as Low as 450 Million Won Appear
"Severe Jeonse Shortage Feared Once Relocation Accelerates"

Eunma Apartment, considered one of the most significant redevelopment projects in the Gangnam area of Seoul, saw its demand for jeonse (long-term lease) contracts decline sharply this year after receiving approval for its redevelopment business implementation plan. As the relocation deadline approaches, uncertainty about when residents will be required to vacate their homes has increased the risk associated with entering new two-year jeonse agreements.

Eunma Apartment, Gangnam-gu. 2025.10.13 Photo by Jinhyung Kang

On September 19, The Asia Business Daily analyzed data from the Ministry of Land, Infrastructure and Transport’s transaction disclosure system and found that both the average jeonse deposit and transaction volume for 84㎡ units at Eunma Apartment in Daechi-dong, Gangnam-gu, Seoul, have been steadily declining since the beginning of this year.

In May, there were 14 transactions for 84㎡ jeonse units, with the average deposit standing at 828.21 million won. However, by last month, transactions had dropped to just seven, with the average deposit falling to 636.64 million won. This means the average deposit dropped by about 200 million won in just a few months.

There are also urgent jeonse listings at prices well below the usual market rate. Among the 84㎡ jeonse units currently available at Eunma Apartment, the cheapest is listed at 450 million won. This is in stark contrast to nearby apartments, where jeonse prices often exceed 1 billion won and show strength in the rental market.

The decline in jeonse prices for Eunma Apartment is largely attributable to the Seoul Metropolitan Government granting final approval for the redevelopment business implementation plan in July, making the relocation process more tangible. With projections for tenant relocation to begin in the first half of next year, demand from tenants has declined significantly as prospective residents are reluctant to move in under these circumstances.

A realtor in Daechi-dong stated, "With the news of the redevelopment relocation, jeonse prices have dropped to the point of collapse. No one knows when they might be required to move out, so it is difficult to complete contracts." Another realtor added, "Units that used to be priced between 600 and 700 million won are now listed at 450 million won. As it is increasingly hard to fulfill the entire lease term, some landlords are offering monthly rentals instead of jeonse to facilitate deals."

Local real estate professionals are concerned about an upcoming jeonse shortage if large-scale relocation proceeds as planned. Since Eunma Apartment is a substantial complex with a high proportion of tenants, a full-scale relocation would likely result in a shortage of alternative housing options for these tenants.

Jeonse prices in neighboring complexes have already been rising since the start of this year. For example, in March, an 84㎡ unit at Daechi SK View traded at 1.6 billion won, but this month it traded at 2 billion won. At Daechi Samsung Apartment, a 59㎡ unit fetched around 900 million won in May, but rose to 1.1 billion won last month.

One realtor commented, "Jeonse listings in nearby apartments that Eunma Apartment tenants can move into are becoming scarce. If large-scale relocation begins in earnest in the first half of next year, the Daechi-dong area could face a severe shortage of jeonse units."

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