Jeonse Prices Surge and Listings Dry Up... Tenants Pushed Out

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It is not just the threshold for buying a home that has risen. Apartment Jeonse (lump-sum deposit lease) prices in Seoul are soaring sharply, deepening the sighs of tenants. Jeonse listings are becoming increasingly scarce, and this is compounded by the trend of Jeonse shifting toward monthly rent (Wolse), escalating housing insecurity for tenants.

Reporter Jeon Hyeong-u has the details.

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Park Sang-min, an office worker in his 30s, is facing eviction from the Seoul apartment where he has lived under a Jeonse contract for the past two years.

The new landlord asked him to move out, stating that they intend to live there themselves.

With his current deposit level, it is difficult to find another Jeonse home in Seoul, so he is looking into Gyeonggi Province.

[Park Sang-min / Jeonse Tenant: With Jeonse prices having nearly doubled, and given that I don't have the capacity to earn such a huge amount within two years, I have so many concerns right now.]

During the one year following the October 15 measures, overall apartment Jeonse prices in Seoul rose by 10.3%.

The upward trend was particularly pronounced in Seoul's outer areas.

We visited the largest apartment complex in Seoul to see just how much Jeonse prices have risen.

For the 84-square-meter unit, prices jumped from 900 million won two years ago to 1.6 billion won.

This is a massive complex of 12,000 households, but currently registered Jeonse listings across all sizes total around 700 households.

The phenomenon of Jeonse converting to Wolse (monthly rent) has also increased the burden on tenants.

This year, Wolse transactions surpassed Jeonse transactions in Seoul's apartment lease market, marking the first time since statistics began for the cumulative January to August period.

[Kim Jong-woo / Real Estate Agent in Gangdong-gu, Seoul: Older property owners sometimes prefer monthly rent over Jeonse to help cover their living expenses.]

Voices are emerging suggesting that the government's real estate policies have been overly focused on curbing purchase prices.

Experts point out that because apartment supply is set to decrease through 2028 and there is a time lag for additional apartment supply, short-term supply measures that can be used as rental housing are necessary.

[Kwon Dae-jung / Chair Professor, Department of Economics and Real Estate, Hansung University: To ease the decline in Jeonse and Wolse supply and the sharp rise in prices, I believe it is time for a short-term housing supply policy by easing regulations on non-apartment sectors.]

Some suggest selectively lifting land transaction permit zones in Seoul's outer areas to encourage Jeonse listings, or adjusting the pace of reducing tax benefits for rental business operators to prevent rental supply from plummeting all at once.

(Video Journalist: Kim Hak-mo, Video Editor: Park Chun-bae)
※ Please note: This article was translated by AI and may contain errors.