[Edaily Reporter LEE DAWON ] A 84-square-meter unit at Jamsil Els in Jamsil-dong, Songpa-gu, Seoul, set a record high when a lease agreement was signed for 1.58 billion won on the 7th. An 82-square-meter unit at Hyundai 2nd Apartment in Geoyeo-dong also sold for a record 700 million won, and an 84-square-meter unit at The Sharp in Songpa-gu set a new record when a lease agreement was signed for 950 million won on the 31st of last month.

While a shortage of jeonse listings is cited as a factor driving up jeonse prices in the Seoul metropolitan area, data shows that in some regions—such as Songpa-gu and Gangdong-gu in Seoul, and Hanam City in Gyeonggi Province—prices have risen by double digits over the past year despite an increase in the number of jeonse listings. This is interpreted as meaning that although the supply of jeonse units on the market has increased, tenant demand has remained strong enough to absorb the supply, preventing prices from falling.

According to the real estate big data platform Asil on the 25th, as of the 17th, the number of jeonse listings for apartments in Songpa-gu stood at 1,274, an 8.7% increase from 1,172 on August 18 of last year. In Gangdong-gu, the number also rose by 14.8% over the same period, from 721 to 828.

Although the number of jeonse listings increased, prices also rose. An analysis of the Korea Real Estate Board’s weekly apartment price trends showed that the jeonse price index in Songpa-gu rose by 13.36% during the same period. In Gangdong-gu, it rose by 11.63%. In essence, the increase in listings did not lead to price stabilization because demand from jeonse seekers absorbed the additional supply in the market.

A similar trend was observed in Hanam City, Gyeonggi Province. The number of jeonse listings in Hanam City rose by 3.3%, from 212 on August 18 of last year to 219 on the 17th of this month. During the same period, the jeonse price index rose by 14.91%.

High-priced jeonse contracts continued in major complexes across Hanam City. A 74-square-meter unit at Misa Gangbyeon Prugio in Mangwol-dong set a record high when it was leased for 800 million won on the 25th of last month. An 84-square-meter unit at e-Pyeonhan Sesang Misa in Pungsan-dong also reached a record high of 820 million won on the 29th of last month, while an 84-square-meter unit at The Sharp Central Forest Misa Riverside in Hakam-dong was leased for 800 million won on June 26.

One reason for the increase in jeonse listings in Songpa-gu compared to a year ago is the large-scale move-ins. Earlier this year, approximately 4,500 households moved into new complexes, including the 2,678-unit Jamsil Raemian I-Park and the 1,865-unit Jamsil Le El. This trend has not only increased the jeonse supply in the new complexes but also led to a rise in jeonse listings in surrounding complexes as the homes where new residents previously lived on jeonse leases re-entered the rental market.

Analysts suggest that this effect has extended, to some extent, to the neighboring Gangdong District. When rental demand shifts toward new developments in Songpa, the homes previously occupied by tenants re-enter the jeonse market, which can lead to an increase in available units in adjacent areas. In fact, the number of jeonse listings in Gangdong District has risen by 14.8% over the past year.

Nevertheless, the fact that jeonse prices in Songpa and Gangdong have risen by double digits suggests that market demand for jeonse was strong enough that the increased supply alone was insufficient to alleviate upward price pressure. In particular, recent analyses indicate that due to a shortage of jeonse and monthly rent listings, the supply effect resulting from large-scale move-ins is not spreading as widely to surrounding areas as it did in the past.

Nam Hyuk-woo, a real estate researcher at Woori Bank, said, “Unlike in the past, the ripple effects of new housing completions are not being felt as widely these days.” He added, “Since there is a shortage of jeonse and monthly rent listings, even when new housing completions occur, prices do not drop significantly, and the effects do not spread widely to surrounding areas—a pattern that has been repeating itself.”