"Can't find it even if you wash your eyes" Seoul rental market 'house hunting war'

[Financial News] #1. A resident of Munjeong-dong, Songpa-gu, Mr. A, was recently surprised when looking at the property board at a local real estate agency office. It was difficult to find even monthly rental listings, let alone jeonse. Mr. A lamented, "I need to find a house to move into in the fall, but there are almost no options in nearby apartment complexes."
According to the industry on the 12th, the 6·27 loan regulation has led to a scarcity of jeonse and monthly rental listings. According to the real estate platform Richgo, as of that day, the number of jeonse listings for apartments in Seoul was 22,736, a decrease of 1,063 (-4.5%) from a month ago. The decrease was significant in Seongbuk-gu (-25.5%), Dongdaemun-gu (-21%), Gwanak-gu (-15%), Eunpyeong-gu (-14.4%), and Songpa-gu (-13.1%).
Monthly rental listings are no exception. During the same period, monthly rental listings decreased by 1.5% to 70,425, with a notable decrease in the Gangnam 3 districts: Gangnam-gu (-11.1%), Songpa-gu (-7.5%), and Seocho-gu (-6.7%).
In some large complexes, jeonse and monthly rental listings have virtually disappeared. According to Naver Real Estate, in Munjeong Raemian in Songpa-gu (1,696 households), there is only one jeonse property of 150㎡ available, and only two monthly rental properties. Among them, an 84㎡ property is listed with a deposit of 150 million won and a monthly rent of 2.5 million won. In Songpa The Centre (1,139 households), there are only two jeonse properties of 51㎡ and two monthly rental properties. In Mapo Jae Hills State Rachel's (1,101 households), there are no jeonse or monthly rental properties.
Transaction volumes are also decreasing. According to the Seoul Real Estate Information Plaza, the number of apartment jeonse transactions in Seoul in July was 11,150, a decrease of 17.1% from the previous month (12,250), and only 1,441 transactions have been recorded this month. During the same period, monthly rental transactions also decreased by 16.8% to 7,428 from the previous month (8,934), with 1,002 transactions recorded this month.
Meanwhile, jeonse and monthly rental prices continue to rise. According to KB Real Estate, the median jeonse price for apartments in Seoul in July was 563.33 million won, an increase of 3.33 million won from the previous month. In the 11 districts of Gangnam, it was 641.67 million won, and in the 14 districts of Gangbuk, it was 495 million won, both rising. Compared to the same month last year, it is more than 30 million won higher. Also, the KB Real Estate Seoul apartment monthly rental index in July was 127.4, setting a new record high since statistics were first compiled. It has been on a rising trend for 17 consecutive months since March 2024 (112.6).
The market analysis suggests that after the 6·27 loan regulation, the apartment sales market has contracted, leading to a scarcity of jeonse and monthly rental listings. As the number of available listings decreases, the anxiety among demanders about price increases is growing. Ham Young-jin, head of the Real Estate Research Lab at Woori Bank, said, "The perception that the Seoul apartment market is a safe asset with lower volatility compared to alternative investments such as stocks, gold, and coins, and capable of hedging against inflation, remains strong," adding, "As long as there is demand, the imbalance in jeonse supply without a price drop may only be prolonged."

en1302@fnnews.com Jang In-seo Reporter