While Monthly Income Rises by 230,000 Won, Jeonse Jumps by 200 Million Won... Jeonse Surpasses Moon Administration after Sales

Seoul Apartment Prices Rise for 85 Consecutive Weeks
Cumulative Jeonse Increase 1.3 Times Higher Than During Moon Administration
New Standard-Sized Apartments in Gireum and Cheongnyangni Reach Jeonse Contracts in the 1 Billion Won Range
Jeo

In the past 85 weeks, the rate of increase in Seoul apartment jeonse (long-term lease) prices has surpassed the record-breaking stretch seen during the Moon Jae-in administration. As Seoul apartment sale prices have risen for 85 consecutive weeks, jeonse prices have also soared, further increasing the housing cost burden for ordinary citizens. Over the past year, while household income climbed by 4.5%, jeonse prices for newly built apartments in the outskirts of Seoul surged by over 30%, cutting off the housing ladder for newlyweds and young people.

Jeonse Prices Up 10.36% Over 85 Weeks... 1.3 Times Higher Than the Moon Administration

According to an analysis of the weekly apartment price trends from Korea Real Estate Board as of September 29, jeonse prices for Seoul apartments rose by a cumulative 10.36% from the first week of February last year to the third week of this month. This is 1.3 times higher than the 8.94% increase recorded during the Moon Jae-in administration, which was the longest upward phase on record. Over the same period, Seoul apartment sale prices were approximately 2.3 times higher, and the jeonse price increase was also steep.

In particular, the increase in jeonse prices was notable in the outer districts of Seoul. Over the 85-week period, Seongbuk-gu and Nowon-gu recorded cumulative jeonse price increases of 15.96% and 15.85%, respectively, following Songpa-gu (19.08%) and Gangdong-gu (17.50%)—the highest rises. Yeongdeungpo-gu and Dobong-gu also drove the upward trend, with increases of 12.87% and 12.85%. In contrast, the so-called “Hangang Belt” areas such as Mapo-gu (9.61%), Seocho-gu (8.47%), and Gangnam-gu (4.91%) saw only single-digit growth, showing a relatively subdued increase.

This is the opposite trend from the Moon administration, when jeonse price increases were most pronounced in the Hangang Belt areas—Seocho (12.42%), Songpa (11.47%), and Gangnam (10.33%).

Jeonse Prices Jump 32%, While Household Income Rises Only 4.5%

The rise in jeonse prices in outer Seoul districts like Nowon and Seongbuk is particularly serious as it adds a significant housing cost burden on lower-income residents. These areas are where demand for jeonse or purchase is concentrated among young adults and newlyweds with limited financial resources. Just as during the Moon administration, even if both sale and jeonse prices rise over 85 weeks, the upward trend in these outer districts hits the younger population much harder.

In areas like Gireum-dong in Seongbuk-gu and the Cheongnyangni area in Dongdaemun-gu, newly constructed flagship apartments with the standard 84㎡ floor plan are now appearing on the market with jeonse prices in the 1 billion won range. According to the Ministry of Land, Infrastructure and Transport's transaction disclosure system, Cheongnyangni Station Hanyang Sujain Graciel 84㎡ and Cheongnyangni Station Lotte Castle both recorded jeonse contracts at 1 billion won in August and this past July, respectively. Compared to September (770 million won) and July (850 million won) of last year, these two complexes saw their jeonse prices rise by 29.8% and 17.6%. In Dongdaemun-gu alone, there have been five new jeonse contracts in the 1 billion won range from June to this month.

In Gireum-dong, Seongbuk-gu, jeonse contracts for Lotte Castle Clasia and Raemian Gireum Centerpiece, both 84㎡, were signed at 1.1 billion won and 1.05 billion won in August and July, respectively. Over the course of just one year, these contracts represent increases of 32.53% and 23.52%.

Meanwhile, the rise in household income has failed to keep up with soaring jeonse prices. According to the Ministry of Data and Statistics Household Trend Survey, the average monthly income in the second quarter for households with at least one member nationwide was 5,295,000 won, up 4.5% from the same period last year (5,065,000 won). This means jeonse prices have risen by at least 3.9 times, and up to 7.2 times, more than incomes.

Experts warn that the jeonse price hikes in these outer districts have effectively broken the housing ladder, preventing tenants from transitioning to homeownership. Kim Jekyung, CEO of Tumi Real Estate Consulting, expressed concern: “Those who intended to live in newly built jeonse apartments in Mapo or Seongdong-gu are now being pushed to buy in the outer districts due to the unstable rental market, making it difficult even for young people to purchase apartments in those areas,” he said. “Unless they get help from their parents, it will be virtually impossible to move up the housing ladder.”

Considering recent real estate price trends, the continued rise in both apartment sale and jeonse prices in the outer districts of Seoul is likely to break the record for the longest upward streak this week. Yoon Jihae, head of research at Real Estate 114, commented, “If new apartments in specific areas become expensive, there will be a tendency for other properties ‘to catch up’ in price, leaving cash-strapped young people and newlyweds either stuck in the rental market or forced to move out of Seoul.”

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