[Edaily Reporter LEE DAWON ] A unit with a usable area of 114 square meters in Magok M-Valley Complex 7 in Magok-dong, Gangseo-gu, Seoul, recently set a record high price after a new global lease agreement was signed for 1.3 billion won. A 49-square-meter unit in Sanggye Jugong Complex 7 in Sanggye-dong, Nowon-gu, and a 59-square-meter unit in Jeongneung Ssangyong in Jeongneung-dong, Seongbuk-gu, also set new record highs with new jeonse contracts signed for 380 million won and 450 million won, respectively. Furthermore, record-high jeonse prices are being reported daily in Gyeonggi Province as well. An 84-square-meter unit at Baekhyeon Village Complex 7 in Bundang-gu, Seongnam, Gyeonggi Province, also set a new record with a new jeonse contract signed for 1.25 billion won.

Record-high jeonse contracts for apartments are being signed one after another across Seoul and Gyeonggi Province. While apartment sales prices in the Seoul metropolitan area have risen sharply this year, jeonse prices appear to be rising even more steeply. In particular, while jeonse prices have risen by double digits, especially in the outskirts of Seoul and major areas of Gyeonggi Province, the number of jeonse listings and transaction volumes have decreased compared to last year.

According to the Korea Real Estate Board’s weekly apartment price trends released on the 25th, cumulative jeonse prices for apartments in Seoul rose 8.73% as of the third week of October this year (as of the 19th). This exceeds the increase in Seoul apartment sales prices (8.63%) during the same period by 0.10 percentage points. Compared to the jeonse price increase (2.17%) during the same period last year, this represents approximately a fourfold increase.

In Gyeonggi Province as well, the rate of increase in jeonse prices outpaced that of sales prices. Apartment jeonse prices in Gyeonggi Province have risen by 6.17% on a cumulative basis this year. This represents a 5.27 percentage point increase compared to the same period last year (0.90%) and was 0.16 percentage points higher than the sales price growth rate for apartments in Gyeonggi Province (6.01%). In essence, while housing prices are rising in both Seoul and Gyeonggi Province, jeonse prices are rising even faster.

By region, the rise in jeonse prices was particularly pronounced in the outskirts of Seoul. Seongbuk-gu saw a 14.93% increase this year, the highest rate among Seoul’s 25 autonomous districts. Nowon-gu also saw a 14.31% increase. Following these, seven districts—including Dobong-gu (11.40%), Gangbuk-gu (11.27%), Seongdong-gu (11.24%), Geumcheon-gu (10.05%), and Songpa-gu (10.04%)—recorded double-digit growth rates. In contrast, Gangnam District (2.26%) and Seocho District (3.59%) saw relatively modest increases.

Actual jeonse transaction prices also rose significantly. According to the Ministry of Land, Infrastructure and Transport’s actual transaction price disclosure system, the median deposit for new jeonse contracts for a 60-square-meter unit in Gil-eum New Town Complex 8 in Gil-eum-dong, Seongbuk-gu, Seoul, was 530 million won from July to September of last year, but rose 32.1% to 700 million won during the same period this year. Similarly, the deposit for a 59.2-square-meter unit in Samho 3, Wolgye-dong, Nowon-gu, rose 41.2% over the same period, from 255 million won to 360 million won.

In Gyeonggi Province, price increases were particularly pronounced in Gwangmyeong City, Giheung District in Yongin City, and Yeongtong District in Suwon City. The cumulative year-to-date increase in jeonse prices reached approximately 14.60% in Gwangmyeong City, while Giheung-gu in Yongin (12.48%), Yeongtong-gu in Suwon (11.71%), Hanam City (11.39%), and Hwaseong City (10.36%) also recorded double-digit growth rates. An 84-square-meter unit at Raemian Anyang Megatria in Manan-gu, Anyang, recently set a record high when a lease renewal was signed for 750 million won.

The upward trend in jeonse prices has continued recently. As of the 19th, jeonse prices for apartments in Seoul rose 0.16% compared to the previous week. Although the rate of increase narrowed by 0.02 percentage points from the previous week (0.18%), it still exceeded the sales price increase rate (0.13%) for the same period. Of Seoul’s 25 autonomous districts, jeonse prices rose in 24 districts, with the exception of Seocho District (-0.10%).

Amid rising jeonse prices, the number of jeonse listings on the market has decreased compared to last year. According to the real estate big data platform Asil, as of the 23rd, there were 20,951 jeonse listings for apartments in Seoul, a 15.4% decrease from the same day last year (24,759). In Gyeonggi Province, the number fell by 37.8% during the same period, from 20,680 to 12,855. Combined, jeonse listings in Seoul and Gyeonggi Province fell from 45,439 to 33,806 over the past year, a decrease of 11,633 (25.6%).

The volume of jeonse transactions also declined across Seoul and Gyeonggi Province. According to the Ministry of Land, Infrastructure and Transport’s Actual Transaction Price Disclosure System, jeonse transactions for apartments in Seoul from January 1 to October 23 of this year totaled 89,096, a 28.0% decrease compared to the same period last year (123,780). Gyeonggi Province also saw a 21.8% decline, from 170,861 to 133,695.

The downward trend was widespread across all regions. In Seoul, all 25 autonomous districts saw a decline in jeonse transactions compared to last year. Seongbuk-gu fell from 5,006 to 3,221, a 35.7% decrease, while Nowon-gu dropped from 9,066 to 7,356, a 18.9% decline. Gangdong-gu (-39.4%) and Dongdaemun-gu (-43.3%) also experienced significant declines. In Gyeonggi Province as well, jeonse transactions declined in 26 of the 31 cities and counties. Transactions also fell in Gwangmyeong City (-44.2%), Uiwang City (-46.4%), Hanam City (-32.4%), and Seongnam City (-29.5%).

In contrast to jeonse, the decline in monthly rent transactions was relatively modest. Monthly rent transactions for apartments in Seoul fell by only 4.5%, from 96,768 last year to 92,413 this year. Consequently, the share of monthly rent transactions in the total rental market rose from 43.9% to 50.9%. In Gyeonggi Province as well, the decline in monthly rent transactions was 8.9%, lower than the decline in jeonse transactions (21.8%). However, this year’s total volume of lease transactions may change once additional contract registrations are reflected.

Experts analyzed that the prolonged shortage of jeonse and monthly rent listings is affecting both the relocation of actual homebuyers and purchase demand. Nam Hyuk-woo, a real estate researcher at Woori Bank, explained that due to the shortage of monthly rent and jeonse listings, end-users with limited purchasing power are moving to nearby non-regulated areas, and tenants in those areas are beginning to purchase properties. Researcher Nam said, “In lower-priced areas, the gap between sales and jeonse prices tends to be smaller, and policy loans are generally available, so access to loans for purchasing is relatively good.”