Seoul Apartment Jeonse Shortage Fuels 40% Price Surge and 'No-Look' Contracts

*Editor's Note: 'AI PRISM' (Personalized Report & Insight Summarizing Media) is an 'AI-based personalized news recommendation and summary service' developed with support from the Korea Press Foundation. It selects and provides six customized news items by reader type.

1. Gangnam Apartment Ceilings Exceed 2.4m, While Non-Gangnam Stuck at 2.3m

- Key Summary: Ceiling heights of new apartments in Seoul's Gangnam area are trending above 2.4 meters, while complexes in non-Gangnam areas such as Seodaemun-gu, Yeongdeungpo-gu, Guri in Gyeonggi Province, and Bupyeong-gu in Incheon remain at 2.3 meters, showing clear polarization. Although raising the ceiling height by 10 centimeters increases construction costs by only 0.2 to 0.6%, non-Gangnam redevelopment associations focus on securing business viability by adding even one more unit for general sale. In contrast, Apgujeong District 2 lowered its maximum floor count to 65 stories to achieve a 2.9-meter ceiling height, prioritizing property value. When installing coffered ceilings in 2.3-meter-high apartments, it costs 3 million to 5 million won for an 84-square-meter exclusive unit, and when bundled as a package paid option, the cost reaches 16.84 million to 21.04 million won, ultimately falling on residents.

2. Amid Jeonse Shortage, 'No-Look Contracts' Despite 40% Price Surges

- Key Summary: Seoul apartment jeonse listings have plunged 45.05% year-on-year, spreading the 'no-look contract' phenomenon where tenants sign leases without viewing the property. The jeonse price for a 59-square-meter exclusive unit at Inwangsan Hillstate in Seodaemun-gu jumped 40% from 450 million won in January to 630 million won in just two months. Jeonse listings fell more than 80% in five districts including Seongbuk-gu (-87.65%), Jungnang-gu (-87.18%), and Nowon-gu (-84.29%), and plunged more than 50% in 16 of the 25 districts. Jeonse prices have risen for 62 consecutive weeks since February last year, with the growth rate expanding to 0.17% in the second week of April.

3. 9,258 Units Supplied Across 11 Complexes, With 8,432 for General Sale

- Key Summary: In the fourth week of April, a total of 9,258 units will be offered across 11 complexes nationwide, with 8,432 units available for general sale. On the 21st, 'Okjeong Central Station Daebang Dietre' in Yangju, Gyeonggi Province, 'Doan Xi Centum Liche' in Yuseong-gu, Daejeon, and 'Cheongju Prugio CLiche' (1,351 units) in Cheongju, North Chungcheong Province, will begin accepting first-priority subscriptions. 'Elif Seongseong Lake Park' (1,165 units) in Cheonan, South Chungcheong Province, offers access to Buseong Station (planned) on the metropolitan Line 1 and excellent work-home proximity in a corporate cluster including Samsung SDI and Samsung Display. Five complexes including 'Goduk New Town Atera' in Pyeongtaek, Gyeonggi Province, will open their model houses this week.

4. Amid Comprehensive Regulations, Didimdol and Beotimmok Loans Drop 40%

- Key Summary: Due to the government's comprehensive household loan regulations, Didimdol loan disbursements from January to March this year totaled 4.0791 trillion won, down 37.4% from the same period last year, while Beotimmok loans plunged 50.7%, with the combined decrease for both products reaching 4.7797 trillion won. Analysts attribute this to the impact of last year's 'June 27 measures,' which reduced loan limits by up to 100 million won, resulting in a sharp drop in demand itself. In contrast, Bogeumjari loans, which had no loan limit adjustments, nearly doubled in sales from January to February over the past year, approaching 5 trillion won. "We must consider that these two products are for end-users," stressed Suh Jin-hyung, professor of real estate law at Kwangwoon University.

5. Contractor Selection for Apgujeong District 5 Expected to Resume Soon

- Key Summary: The contractor selection for the Apgujeong District 5 reconstruction project, halted for 10 days due to an 'unauthorized filming incident,' is set to resume as both Hyundai Engineering & Construction and DL E&C have submitted fair competition pledges. The project spans 5 basement levels and 68 above-ground floors across 8 buildings with 1,397 units, with construction costs alone reaching approximately 1.5 trillion won. After the pen camera filming controversy involving a DL E&C official emerged on the 10th, Hyundai E&C took legal action including filing a complaint with police, and Gangnam-gu Office requested the association to suspend procedures until a legal interpretation is issued. Once the final confirmation process between the association and Gangnam-gu Office is completed, competitive bidding between Hyundai E&C and DL E&C is expected to resume soon.

6. Multi-Home Owner Mortgages to Be Recalled if Ownership Verification Is Refused

- Key Summary: KB Kookmin Bank will implement a measure from the 17th banning mortgage maturity extensions for multi-home owners in the Seoul metropolitan area, with the benefit of term being forfeited and immediate repayment obligation arising before maturity if the borrower owns more than one home. Loans will likewise be recalled if borrowers refuse to submit documents requested by the bank or provide false or forged materials. Exceptions include homes with signed sales contracts, daycare centers, first purchases of unsold homes after completion, participation in inheritance or creditor-protection auctions, and population-declining areas. In the financial sector, there are comments that "household loan regulations are becoming more complex and the paperwork to process is increasing."