Seoul Apartment Jeonse Prices Surge 0.35%, Largest Increase in 12 Years and 8 Months

Seoul apartment jeonse (lump-sum deposit rental) prices rose 0.35% in a single week, marking the highest weekly increase in 12 years and 8 months since October 2013. Amid a prolonged shortage of available properties, surging rental demand centered on school districts and major transit hubs is exacerbating the severe rental market crunch.

What is Driving the Largest Jeonse Price Surge in Over 12 Years?

According to data from the Korea Real Estate Board, the jeonse price index for Seoul apartments jumped 0.35% in the fourth week of June compared to the previous week. This rapid short-term upward trend outpaces even the extreme surges seen in previous housing cycles.

• Chronic Property Shortage: Due to the widespread use of lease renewal rights and a declining preference for monthly rent among tenants, pure jeonse listings have virtually dried up.
• Concentrated Regional Demand: Areas with excellent living conditions or top-tier school districts—such as Seongdong-gu (0.55%), Seongbuk-gu (0.55%), and Guro-gu (0.54%)—are seeing available properties contracted at record-high prices as soon as they hit the market.
• Upward Pressure on Sale Prices: Rising jeonse prices are stimulating 'gap investment' demand and prompting real demanders to switch from renting to buying. Consequently, Seoul apartment sale prices also recorded a 0.30% increase this week.

Jeonse Market Outlook for the Second Half of 2026

Market experts predict that instability in the jeonse market will persist throughout the second half of the year. While tenants are preemptively seeking homes ahead of the peak autumn moving season, the volume of new apartment completions remains severely inadequate. In response to these market conditions, the government is preparing a comprehensive real estate policy in July, heavily discussing potential deregulation and supply expansion measures.

Frequently Asked Questions

Q. Just how severe is the current jeonse property shortage?

A. According to real estate big data platforms, the number of jeonse listings for Seoul apartments has plummeted by over 30% compared to the beginning of the year. In highly sought-after large apartment complexes, particularly for the standard 84㎡ layout, prospective tenants are virtually queuing up for newly available units.

Q. Will the surge in jeonse prices affect overall housing sale prices?

A. Yes. When the jeonse-to-sale price ratio increases, it acts as a strong catalyst pushing up sale prices. It lowers the barrier for gap investors and encourages frustrated renters to purchase homes instead. The recent rebound in housing prices in Seoul's major suburban areas is directly correlated with this trend.