Seoul Jeonse Deposits Reach 1 Billion Won in Mid-Tier Districts
Jeonse deposits in Seoul have breached the 1 billion won threshold in districts outside the traditional premium zones. This marks a significant upward shift in the city's rental benchmarks.
Jeonse deposits in Seoul have reached the 1 billion won level in mid-tier districts. This price point was previously exclusive to the Han River belt and Gangnam. The shift indicates a broadening of the rental crisis across the capital.
Cumulative apartment jeonse prices in Seoul rose by 7.79 percent as of the second week of September. This rate is approximately 4.7 times the 1.16 percent recorded during the same period last year. The annualized figure has already doubled the full-year gain of 3.77 percent from the previous year.
Price Surge Hits Mid-Tier Districts
Seongbuk-gu recorded the highest cumulative jeonse increase in Seoul at 12.84 percent. An 84-square-meter unit in Gireum-dong signed a new contract at 1.1 billion won. This transaction value was reached in just three months for comparable units in the area.
Dongdaemun-gu saw a 53rd-floor unit contract at 1 billion won in early September. The previous transaction for a similar unit in late November was in the 800 million won range. Gangbuk-gu recorded asking prices of 1.2 billion won for an 84-square-meter unit in June.
Market Ratios and Inventory Tighten
The jeonse price-to-sale price ratio in Seoul averages 52.3 percent. The northeastern region, where these increases are concentrated, sits at 55.8 percent. This is higher than the 45.8 percent average in the southeastern Gangnam districts.
Rising sale prices and tight jeonse inventory are driving these benchmark shifts. Some demand is migrating to adjacent Gyeonggi and Incheon regions due to high costs. Analysts warn that renewal-expired inventory returning to the market could re-intensify upward pressure.
New Build Contracts Define Benchmarks
Newly built complexes are anchoring the new 1 billion won price tier. A 30-year-old complex in Nowon-gu signed a contract at 910 million won. This pace of appreciation is exceptional for a building completed in 1995.
Data from the Korea Real Estate Board confirms the steepest climb since 2015. The 1 billion won level now corresponds to pricing seen in the Han River belt. Mid-tier areas are establishing new-build-centric benchmarks that were once reserved for premium locations.
