Seoul on High Alert for Jeonse Crisis... Jeonse Price Index Hits Record High in 4 Areas Including Yongsan

As of last May, the housing Jeonse price index in some areas of Seoul surpassed the peak recorded during the rental crisis of 2021–2022. While the sales price index has been surpassing its previous high since the second half of last year, centered around the Gangnam 3 districts (Seocho, Gangnam, and Songpa) and Mayongseong (Mapo, Yongsan, and Seongdong), this marks the first time the Jeonse price index has hit a new record high.
According to an analysis of monthly statistics from the Korea Real Estate Institute by the Financial News on the 23rd, the housing (including apartments and villas) Jeonse price index in four districts—Yongsan, Seongdong, Gwangjin, and Songpa—recorded all-time highs last May. 0). 1, while Gwangjin and Songpa districts also hit all-time highs for their housing Jeonse price indices.
It is projected that the number of regions breaking previous peaks will increase further. 8). Dongdaemun-gu and Jongno-gu are also showing levels around 98% of their peaks.
Other metropolitan areas outside of Seoul are no exception. In Gyeonggi Province, areas such as Sujeong-gu in Seongnam, Hanam-si, and Paldal-gu in Suwon saw their housing Jeonse price indices in May approach 99% of the peak levels seen during the past rental crisis. If this trend continues, it appears that regions across the metropolitan area, including Seoul, will see their housing Jeonse price indices hit record highs one after another. The industry cites the worsening Jeonse supply and demand situation as the primary reason, driven by successive regulations followed by intensifying pressure on multi-home owners this year.
ljb@fnnews.com Lee Jong-bae, Choi A-young Reporter