Apartment jeonse prices have continued a much steeper rise this year than last, spreading the jeonse (a Korean lease system requiring a large lump-sum deposit instead of monthly rent) crunch beyond the greater Seoul area to provincial regions. With prices rising sharply on supply shortages not only in Seoul and Gyeonggi but also in Ulsan, Sejong and Busan, concerns are growing that the burden on tenants will intensify further ahead of the second-half moving season.
According to the Korea Real Estate Board on the 30th, cumulative nationwide apartment jeonse prices rose 2.91% this year as of the 27th of this month, more than 22 times the increase over the same period last year (0.13%). The greater Seoul area rose 4.59%, about 8.5 times the increase over the same period last year (0.54%), while Seoul rose 6.27%, more than five times higher than last year's rate (1.22%).
The jeonse crunch is spreading beyond the greater Seoul area to major provincial cities. Ulsan recorded the highest increase among provincial metropolitan cities with a cumulative jeonse price rise of 4.09% this year, followed by Sejong at 3.64% and Busan at 2.62%. In Ulsan in particular, jeonse prices have continued to climb centered on Buk-gu and Nam-gu. Analysts say the scarcity of existing apartment jeonse listings has grown as new apartment supply has sharply declined, with the supply shortage expected to persist through 2028. In Sejong, jeonse prices are also rising centered on preferred residential areas such as Jongchon-dong and Areum-dong. With only 42 units scheduled for occupancy this year and almost no new occupancy next year either, the supply shortage is cited as a factor pushing up jeonse prices. In Busan as well, jeonse prices continue to rise centered on preferred areas such as Haeundae-gu.
In the greater Seoul area, the increases in Seoul and Gyeonggi remained pronounced. Seoul jeonse prices rose 0.25% this week as well, while Gyeonggi rose 0.14% and Incheon rose 0.09%. In Seoul, Seongbuk-gu posted the highest cumulative jeonse price increase this year at 10.10%, followed by Nowon-gu (9.28%), Seongdong-gu (8.49%), Gwangjin-gu (7.82%) and Dobong-gu (7.77%). Analysts say the trend of jeonse demand concentrating in the Gangbuk area and in areas with genuine end-user demand, where prices are relatively lower than in the Gangnam area, is continuing.
Gyeonggi Province also saw continued increases centered on areas adjacent to Seoul. Gwangmyeong recorded the highest cumulative increase at 10.35%, followed by Suwon's Yeongtong-gu (8.00%), Yongin's Giheung-gu (7.95%) and Hanam (7.39%). The rise is attributed to end-user demand flowing into areas with excellent access to Seoul, along with demand that has delayed purchases due to lending restrictions remaining in the jeonse market, increasing upward pressure on prices.
By contrast, the sales market shows signs of somewhat calming. This week, greater Seoul area apartment sales prices rose 0.16%, a narrower gain than the previous week (0.18%). Seoul also narrowed from 0.27% to 0.25%, and Gyeonggi from 0.17% to 0.15%. This is interpreted as buying sentiment easing somewhat due to price burdens in some areas that recently surged and the impact of lending restrictions.
