Seoul apartment prices jump... monthly rent share overtakes jeonse at 54%

[Financial News] Seoul apartment transaction prices rose 1.33% in May from the previous month, widening the pace of gains.
According to apartment transaction price and volume trends released by the Seoul Metropolitan Government on the 22nd, prices were up 13.47% from the same month a year earlier.
By region, prices rose across all parts of Seoul, with the CBD posting the sharpest increase at 2.52%. Southwestern Seoul and Northeastern Seoul also showed clear gains, rising 1.53% and 1.51%, respectively. By size, all categories increased, but small units, measuring over 40 square meters and up to 60 square meters, rose the most at 1.79%.
The jeonse market also continued to rise. In May, Seoul apartment jeonse transaction prices climbed 1.04% from the previous month, with Northeastern Seoul leading the overall increase at 2.25%. Small units again posted the steepest gain, rising 1.43%.
In the rental market, however, the preference for monthly rent became even more pronounced in June. Monthly rent transactions accounted for 54.1% of apartment leases, far exceeding jeonse transactions at 45.9%. Since December last year, jeonse and monthly rent had remained roughly balanced at around 50-50, but monthly rent clearly took the lead as transactions reached 8,819, more than 1,300 above jeonse at 7,477. The renewal contract share among jeonse transactions was 53.8%.
In the sales market, the share of mid- to low-priced homes under 1.5 billion won rose again. As of June, apartment transactions priced at 1.5 billion won or less accounted for 77.9% of the total, up 5.0 percentage points from 72.9% in the previous month. Unlike April and May, when high-end home transactions surged ahead of the end of the temporary suspension of heavier capital gains taxes on multiple-home owners, June saw a easing of concentration in the luxury segment and a rise in demand-driven transactions centered on mid- to low-priced homes, partly due to lending restrictions. By district, transactions were most frequent in Nowon District, Gangseo District, Seongbuk District and Guro District, and in these areas the share of transactions under 1.5 billion won exceeded 90% by a wide margin.


[email protected] Jeon Min-kyung Reporter