Seoul Apartment Jeonse Prices Rise for 50 Consecutive Weeks, 3 Reasons for Deepening Real Estate Polarization

Seoul Real Estate Market: Unstoppable Jeonse Price Hikes and Listing Shortages

The instability in the rental market is growing as Seoul apartment jeonse (key money deposit) prices have recorded an upward trend for 50 consecutive weeks. The shortage of jeonse listings is particularly evident in core areas such as Gangnam, Seocho, and Songpa, leading to steep increases in asking prices. This rise in jeonse prices is stimulating purchase demand, acting as a major factor driving new record high prices for apartments in core locations.

Why is Real Estate Extreme Polarization Deepening?

The most prominent feature of the current real estate market is extreme polarization. While core areas in Seoul and southern Gyeonggi regions with positive factors like the GTX opening (e.g., Dongtan) are showing strength, peripheral areas continue to decline. The key reasons for this phenomenon are as follows:

• Preference for a "Solid Single Home": As domestic and global economic uncertainties increase, demand is heavily leaning towards apartments in prime locations that are advantageous for asset defense.

Application of Stress DSR: As financing becomes more difficult due to strengthened lending regulations, a 'league of their own' is forming where only buyers with purchasing power enter the core location market.

Concerns Over New Supply Shortages: Anxiety that the new apartment supply in Seoul will be insufficient in the future due to a decrease in permits and rising construction costs is stimulating buying interest.

📌 Frequently Asked Questions (FAQ)

Q. How long will the upward trend in jeonse prices continue?

A. Considering the current shortage of jeonse listings and the waiting demand for subscriptions in the second half of the year, the consensus among experts is that the strong jeonse prices are highly likely to continue for the time being. In particular, the direction of properties whose renewal contracts are expiring is a major variable.

Q. Should those without homes buy a house now?

A. Given the extreme polarization by region, 'blind buying' should be avoided. It is necessary to carefully examine financing conditions, such as the delay in interest rate cuts and lending regulations (Stress DSR), and conduct thorough screening for actual demand purposes.