Seoul Apartment Average Jeonse Exceeds 700M KRW, Causes and Prospects of Accelerated 'Exodus from Seoul'
As the average jeonse price for Seoul apartments surpasses 700 million KRW for the first time, non-homeowning real demanders burdened by housing costs are accelerating their relocation and purchases in Gyeonggi and Incheon areas.
The average jeonse (key money deposit) price for a Seoul apartment has surpassed 700 million KRW for the first time in history, accelerating an 'exodus from Seoul' among tenants unable to bear the surging housing costs. As non-homeowning real demanders flock to Gyeonggi and Incheon areas with good accessibility to Seoul, concerns about a chain reaction of housing price hikes across the entire metropolitan area are growing.
Seoul Jeonse Exceeds 700M KRW, Deepening Supply-Demand Imbalance
According to KB Real Estate statistics, the average jeonse price for Seoul apartments recorded 704.58 million KRW as of July 2026. This is the highest level ever since the statistics began in 2011. An extreme drought of jeonse listings is continuing due to a combination of stricter residential requirements following the designation of land transaction permission zones, a sharp drop in move-in volumes for new apartments, and tightened jeonse loan regulations. Tenants who cannot find jeonse listings are being pushed into semi-jeonse or monthly rent, driving Seoul apartment monthly rents to new all-time highs.
Real Demanders Pushed to Gyeonggi and Incheon, Balloon Effect Materializing
Exhausted by the jeonse crisis, non-homeowning real demanders are turning their attention to key areas in Gyeonggi and Incheon, which have relatively lower price barriers and improved transportation infrastructure. In fact, apartment sales transactions in areas adjacent to Seoul, such as Gwangmyeong, Guri, and Gunpo, surged in the first half of this year. A clear 'balloon effect' is emerging, where the jeonse instability that started in Seoul is driving up both jeonse and purchase prices in the outskirts of the metropolitan area.
Frequently Asked Questions (FAQ)
- Q. When will the Seoul apartment jeonse crisis be resolved?
A. It is expected to be difficult to find a clear solution for the time being. The volume of new move-ins scheduled for the second half of the year is significantly lower than average, and the upward price pressure is highly likely to continue in conjunction with the expiration of contract renewal claim rights. - Q. Will the government's expansion of housing supply in the 3rd new towns help?
A. Although the government has ordered a speed war on housing supply in metropolitan new towns, the prevailing analysis is that there are limits to extinguishing the immediate jeonse crisis as it takes several years of physical time until actual move-in.