Shocked While Looking for Jeonse... "A 30-Year-Old Apartment Costs 900 Million Won" Supply Halved in Northern Seoul [Real Estate AtoZ]

Jeonse Price Surge Focused in Northeastern Seoul Districts Including Seongbuk, Nowon, and Dobong

Number of Jeonse Listings in Nowon Halved Within a Year

If Renters Turn to Buying Amid Jeonse Shortage, Mid- and Low-Priced Home Values Could Fa

Apartment Complex Panorama in Nowon District

In 2026, jeonse prices in Seongbuk and Nowon Districts in Seoul surged by more than 12%, recording the highest growth rate since the Korea Real Estate Board statistics began in 2012. As the number of available properties plummeted due to tighter loan limits and expanded land transaction permit requirements, even 30-year-old apartments with an exclusive area of 84 square meters surpassed 900 million won in jeonse deposits.

According to the Korea Real Estate Board, as of the second week of September 2026, the cumulative increase for the year was 12.84% in Seongbuk District and 12.25% in Nowon District, ranking first and second among Seoul’s 25 districts. These figures exceeded Seoul’s average increase of 7.79% by more than 4 percentage points.

Previously, the highest increases under the same criteria were in 2015 for both areas, when low interest rates and conversions to monthly rent overlapped, recording 7.75% for Seongbuk and 10.77% for Nowon. The 2026 rates outpaced those by 5.09 percentage points and 1.48 percentage points, respectively. In fact, Seongbuk District already surpassed its all-time annual record set in 2015 (11.57%) just by September 2026.

This is confirmed by other indicators as well. According to KB Kookmin Bank’s monthly apartment jeonse price index, jeonse prices in Seongbuk District rose by 13.09% from January to August 2026—the highest since their statistics began in 2003. During the same period, Nowon District’s jeonse prices increased by 11.63%.

This trend resembles 2011, when the aftermath of the global financial crisis drove buyers toward mid- to low-priced jeonse, pushing up demand. Back then, from January to August, Seongbuk (12.24%) and Nowon (10.98%) saw sharp increases, leading the upward trend in the northern outskirts of Seoul.

However, while the surge in 2011 stemmed from weakened buying sentiment following the global financial crisis, the surge in 2026 is due to a policy-driven supply-demand imbalance caused by expanded land transaction permit zones, tax reforms, the cumulative use of the right to renew rental contracts, and tighter loan regulations, all of which locked up available inventory. In its fifth year since the Lease Protection Act 2, it can be seen as an evolved form that inherited the aftereffects of 2021.

30-Year-Old Apartments Surpass New Builds in Price... Northern Seoul Sees Record Jeonse Deposits

Even 30-year-old apartments in northern Seoul are breaking record prices. For instance, on September 11, a ninth-floor unit (84 sqm exclusive area) at Geonyeong 3rd Apartment Complex—a landmark in Junggye-dong, Nowon District—was newly leased out for 910 million won, marking the district’s highest jeonse deposit for a standard-size apartment in 2026. This amount is 230 million won higher than a contract for the same size and floor in January. Built in 1995, Geonyeong 3rd Apartment Complex has now overtaken Forena Nowon (870 million won, completed in 2020) and Nowon Lotte Castle Signature (850 million won, completed in 2023).

In Seongbuk District, the jeonse deposit for a standard 84 sqm unit at Lotte Castle Clacia, completed in 2022, reached 1.1 billion won, ranking first in the area, followed by Raemian Gireum Centerpiece (completed in 2019) and Gileum Station Lotte Castle Twin Gold (completed in 2024), both exceeding 1 billion won. All these contracts set new all-time highs. Even in apartment complexes over 20 years old, there were 900 million won contracts. For example, a unit at Gileum New Town 4 Danji E-Pyunhansesang, completed in 2005, was newly leased for a record 900 million won on August 6. The deposit for this deal was 270 million won higher than a similar contract in January 2026.

According to the real estate big data provider Asil, as of September 22, 2026, the total number of jeonse listings for Seoul apartments was 20,298, a 13.3% decrease compared to 23,390 a year ago. Dongdaemun District saw the steepest drop, with listings falling by 69.4% from 1,027 to 315. This was followed by Jungnang District (-67.8%), Guro District (-61.6%), Geumcheon District (-58.9%), Nowon District (-51.5%), and Dobong District (-50.5%).

After the expansion of land transaction permit zones and tax system reforms, more non-resident owners began occupying their own apartments, while renewals of existing tenants increased, sharply reducing the supply of new jeonse listings on the market. Last month, the jeonse supply-demand index in the Seoul metropolitan area rose to 180.1. An index above 100 indicates that demand far outweighs supply.

Time Lag Until Supply... Concerns over Prolonged Jeonse Price Surge

The government has announced plans to respond by increasing housing supply. Hong Jiseon, Minister of Land, Infrastructure and Transport, stated during a National Assembly personnel hearing that "the most important policy for stabilizing the rental market is sufficient housing supply." However, it typically takes around three years from groundbreaking to occupancy, so there is a time lag before supply policies translate into actual available inventory. In the meantime, the shortage of listings, compounded by the high demand during the autumn moving season, is likely to prolong the upward trend in jeonse prices in northern Seoul for some time.

Song Seunghyun, CEO of Urban & Economy, commented that "this was not a result of natural market adjustment, but a supply-demand imbalance caused by policy factors, so the upward trend is likely to continue." He added, "In high-priced areas where the gap between jeonse deposits and sales prices is wide, it is difficult for tenants to suddenly become buyers. However, in relatively lower-priced, outer areas, ‘conversion demand’ may become pronounced as tenants seeking affordable housing turn to buying instead." If would-be home buyers absorb the more affordable units first due to the burden of jeonse prices, the overall sales prices in those areas could come under upward pressure.

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