Causes of Seoul's 76-Week Apartment Price Rise and Jeonse Shortage, and the Second Half Real Estate Market Outlook

Economic Breaking News, July 25, 2026 — Apartment prices in key areas of Seoul have recorded an astonishing 76 consecutive weeks of upward trends, pushing the housing anxiety of those without homes to an extreme. To make matters worse, a severe jeonse (deposit-based lease) property shortage has drastically reduced available rentals, causing housing costs for ordinary citizens to skyrocket. With the current government's real estate policies facing fierce criticism, we break down the core issues of the real estate market for the second half of the year.

76 Consecutive Weeks of Rising Seoul Apartment Prices: An Unstoppable Rally

According to recent indicators from the Korea Real Estate Board, Seoul apartment prices have continued to rise for 76 straight weeks, driven largely by core areas such as the "Gangnam 3" districts and "Ma-Yong-Seong" (Mapo, Yongsan, Seongdong). This is solidifying into a long-term trend rather than a temporary rebound.

• Deepening Preference for New Builds: Anxiety over future supply shortages—exacerbated by rising construction costs and reconstruction regulations—has led to heavily concentrated demand for existing new apartments.
• Strengthened Safe Haven Perception: Amidst macroeconomic uncertainty and extreme stock market volatility, the formula that "Seoul apartments are the most reliable safe asset" is once again dominating the market.

Severe Jeonse Property Shortage Puts Tenants on Alert

An even more serious issue than rising sale prices is the fact that jeonse listings have virtually dried up. As landlords convert to monthly rent (wolse) or drastically raise jeonse deposits to cover higher property taxes, the volume of jeonse properties circulating in the market has plummeted.

As a result, tenants are being forced into expensive semi-jeonse or monthly rent contracts, or pushed to relocate to the outskirts of the city. The increased burden of jeonse deposits directly translates to a decrease in real income, negatively impacting the domestic economy.

Ongoing Real Estate Policy Debates: When Will the Market Stabilize?

Fierce policy debates are spreading among politicians and citizens regarding the current government's measures to curb soaring house prices. Although a recent "National Town Hall on Real Estate Policy" focused heavily on tax reform, market reception remains cold, accompanied by critical public opinion that the government is repeating past failures. Experts predict that without breakthrough supply measures, it will be difficult to suppress the current upward pressure using only short-term tax incentives or regulations.

Core FAQ for Prospective Buyers and Tenants

Q1. Will the upward trend in Seoul apartment prices continue in the second half of the year?

Given the current concerns over supply shortages coupled with expectations of interest rate cuts, the majority of experts agree that a strong steady-to-upward trend is highly likely to be maintained until the end of the year. However, the possibility of a temporary correction due to external shocks, such as the U.S. presidential election results or a global macroeconomic crisis, cannot be ruled out.

Q2. Should I stretch my finances to buy a home right now?

"Panic buying" driven by jeonse anxiety should be avoided. Considering the current high asking prices and mortgage interest burdens, it is advisable to take a conservative approach within your cash flow and manageable debt levels (DSR). Be sure to explore various alternatives, including new apartment subscriptions (cheongyak).