Seoul Apartment Average Jeonse Surpasses 700M KRW: Causes of Housing Instability
Seoul's average apartment jeonse price has surpassed 700 million KRW for the first time, fueling housing instability concerns. Decreased move-in volume and regulations have exacerbated the supply-demand imbalance.
Seoul Apartment Average Jeonse Breaches 700 Million KRW Mark
In July 2026, Seoul's residential lease market crossed a significant psychological resistance line. According to recent KB Real Estate statistics (as of July 13), the average jeonse price for a Seoul apartment reached 704.58 million KRW. This marks an all-time high since data collection began in June 2011 and the first time the figure has surpassed the 700 million KRW threshold. As figures that were hard to imagine just a few years ago become reality, concerns regarding housing instability are rapidly spreading across online real estate communities, particularly among the 2030 generation. With the autumn moving season approaching, the perceived financial burden on prospective tenants is becoming increasingly severe.
Structural Supply-Demand Imbalance Fueling Instability
The core driver behind this surge in jeonse prices is a structural supply-demand imbalance that is difficult to resolve in the short term. According to real estate industry data, new move-in volumes have shown a continuous downward trend this year. Furthermore, market supply has been severely constrained by stricter mandatory residence requirements and the maintenance of land transaction permit zones in major areas, leading to a locking effect on existing housing listings. With an acute shortage of Seoul apartment jeonse listings available on the market, tenants are left with significantly fewer options. More concerning is that unmet jeonse demand is inevitably shifting to the semi-jeonse or monthly rent market, driving up the jeonse-to-rent conversion rate and pushing monthly rent prices higher, thereby creating a domino effect of instability across the entire lease market.
Distinct Uptrend in Gangbuk Area... Ripple Effects Across the Market
Examining the market by region reveals stark temperature differences and a chain-reaction migration phenomenon. As of July, the average jeonse price in the 11 Gangnam districts stood at 811.04 million KRW, compared to 586.85 million KRW in the 14 Gangbuk districts. The key takeaway here is the pace of the increase. This year, the cumulative jeonse price growth rate in the Gangbuk area (7.43%) has significantly outpaced that of the Gangnam area (4.87%). This is interpreted as the result of single-person households and newlyweds, who cannot afford the 700 to 800 million KRW jeonse prices in the city center and Gangnam, migrating toward the Gangbuk or suburban areas where prices are relatively more accessible. Unless clear signals of supply expansion emerge, the strength of Seoul apartment jeonse prices and the outward push of demand are expected to persist for the foreseeable future.