Seoul's Outer Districts See Sharp Rise in Jeonse and Monthly Rent Prices... "This Is Our Neighborhood"

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Apartment jeonse (lump-sum lease) prices in Seoul have risen for 84 consecutive weeks. As demand for more affordable properties continues, price increases have been particularly pronounced in Seoul's outer districts.

Reporter Baegun has the story.

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This large-scale apartment complex with 3,300 households in Nowon-gu, Seoul.

Last month, a 10th-floor unit with a dedicated area of 69 square meters was contracted for 400 million won, but the price jumped to 450 million won this month.

Last month, Nowon-gu recorded the highest jeonse price growth rate for housing in Seoul at 1.58%.

Monthly rent was also about 1.8 times the Seoul average.

[Kim Kyung-sook / Real Estate Agent in Nowon-gu, Seoul: People must live here because this is where their daily lives are based, but with landlords moving back in and a lack of listings, they are moving out toward Uijeongbu, Yangju, or Byeollae.]

With strength centered on outer districts not only in sales but also in jeonse, Seoul apartment jeonse prices have risen for 84 straight weeks.

This is the third-longest streak on record.

As a result, an increasing number of tenants are opting for lease renewals instead of moving.

Last month, the proportion of renewal contracts among Seoul apartment jeonse contracts stood at 58.9%, up more than 15 percentage points from a year earlier.

As rental demand shifts to non-apartment housing amid the jeonse crisis, Seoul's jeonse price index for row and multi-family houses has also surpassed its previous peak for the first time in 4 years and 7 months.

The transition of jeonse properties into monthly rent is also continuing.

From January to July of this year, the proportion of monthly rent among housing lease transactions in Seoul reached 69.7%, up 5.9 percentage points from the same period last year.

Monthly rent prices have also surged, with the average monthly rent for Seoul housing exceeding 1.3 million won for the first time since statistics began in 2015.

[Park Won-gab / Senior Real Estate Specialist, KB Kookmin Bank: Given that there are not many new incoming supply volumes and we are currently in a transitional phase where jeonse is shifting to monthly rent, jeonse instability is expected to persist for the time being.]

Experts advise that as rising jeonse and monthly rent prices drive some demand back toward buying homes, rental market stabilization policies must be pursued simultaneously to stabilize housing prices.

(Video Editing: Choi Jin-hwa, Design: Seo Seung-hyun, VJ: Lee Ji-hwan)
※ Please note: This article was translated by AI and may contain errors.