Seoul Metro Apartment Jeonse Rises for 15 Consecutive Weeks: Will Buying Sentiment Continue to Recover?
Metropolitan apartment jeonse prices have risen for 15 consecutive weeks, reviving homebuying sentiment amidst supply shortage concerns.
As of June 30, 2026, the jeonse (lump-sum deposit lease) prices of apartments in the Seoul metropolitan area have recorded a 15-week consecutive upward streak. Amidst a growing jeonse shortage driven by a decline in new move-in volumes and an aversion to non-apartment housing, prospective homebuyers feeling the fatigue of soaring lease prices are turning to outright purchases, causing housing market sentiment to revive.
Background of Soaring Jeonse Prices and Stimulated Buying Sentiment
The most pressing issue in the recent metropolitan apartment market is the persistently rising jeonse price. The main reasons for this upward trend can be analyzed in two major parts:
- Structural Plunge in New Housing Supply: The accumulated decline in housing permits and construction starts over the past few years has materialized in 2026, severely aggravating the apartment supply drought.
- Intensified Preference for Apartments: Due to the lingering aftermath of past jeonse fraud issues, trust in non-apartment housing like villas and officetels has plummeted, concentrating jeonse demand heavily on the relatively safer apartment market.
As jeonse prices chase right under the chin of sales prices—driving up the jeonse-to-purchase price ratio—the gap between renting and buying has narrowed. Consequently, an increasing number of end-users are deciding to take out slightly larger loans to purchase homes, reviving the once-frozen buying sentiment. New high-price transactions are increasingly appearing, especially in core metropolitan areas with transportation developments or excellent school districts.
Real Estate Market Outlook FAQ
Q. Will the rebound in metropolitan housing prices accelerate in the second half of the year?
With rising jeonse prices firmly supporting the baseline, the possibility of a price drop in major metropolitan areas is limited. However, since concerns over prolonged high interest rates and loan regulations remain, we are more likely to see a polarized market by region and complex rather than a full-scale explosive bull market like in the past.
Q. Should end-users without homes buy right now?
Given the supply shortage phase where the jeonse upward trend is unlikely to break, it may be reasonable for end-users with sufficient funds to look for buying opportunities focusing on newly built apartments or urgent sales. However, caution is advised as excessive highly-leveraged investments aiming for short-term capital gains can be extremely vulnerable to interest rate volatility.