Gap Between New and Renewed Jeonse Deposits for 84㎡ Seoul Apartments Widens to 80 Million Won Amid Shortage

Real estate platform Zigbang announced that the gap between new lease contracts, which reflect current market prices, and renewals, which are influenced by existing contract terms, is widening in the Seoul metropolitan area's jeonse (long-term deposit-based lease) market.
Zigbang analyzed jeonse transactions for apartments with exclusive areas of 59㎡ and 84㎡ in the metropolitan area from January to June of this year, focusing on cases where both new contracts and renewals occurred within the same complex and for the same unit size. Jeonse deposits were compared based on the median transaction price for the same complex and size, and monthly rent contracts were excluded.
The analysis showed that in Seoul, the new jeonse deposit for a 59㎡ unit rose from 500 million won in January to 547.5 million won in June, an increase of 47.5 million won. In contrast, renewal deposits rose by only 5 million won, from 465 million won to 470 million won during the same period, showing a smaller margin of increase.
The gap between new contracts and renewals in June reached 77.5 million won, more than double the 35 million won gap recorded in January.
For 84㎡ units, the new contract deposit rose by more than 40 million won, from 656.25 million won to 700 million won, while renewal deposits increased from 612.5 million won to 620 million won. Consequently, the gap widened from 43.75 million won in January to 80 million won in June.
In the Gyeonggi region, the difference in deposits between new contracts and renewals for 59㎡ units grew from 20 million won in January to 22 million won in June, while for 84㎡ units, it increased from 10.5 million won to 51 million won during the same period.
The proportion of lease renewals is on an upward trend. In Seoul, the share of jeonse renewals rose from 47.4% in January to 55.0% in June, surpassing the proportion of new contracts. Gyeonggi Province also saw the renewal rate increase from 38.6% to 45.4% during the same period.
Kim Eun-sun, head of the Big Data Lab at Zigbang, said, "It appears that more existing tenants are choosing to renew their contracts due to the recent shortage of jeonse listings and rising prices, which have increased the financial burden for new contracts, as well as the consideration of incidental costs such as moving expenses and brokerage fees."
※ Please note: This article was translated by AI and may contain errors.