Seoul jeonse listings vanish as prices surge: "It’s better to use the lease renewal right and stay put"

At Gasan Doosan We’ve Apartment in Geumcheon-gu, Seoul, which has 1,495 households, only one jeonse listing is currently available for transaction. The complex has more than 1,000 units, but until last week there were no listings at all. This week, the first one finally appeared, making it a rare jeonse opportunity. Although the lease still has about four months left, inquiries are already pouring in. A nearby real estate agent said, "It is hard to find an apartment jeonse in this area," adding that "more young people are asking whether they can view a home as soon as a listing comes up."
At Lotte Castle Gold Park in Doksan-dong, near Gasan Doosan We’ve Apartment, only nine jeonse listings are available among the 3,271 households across phases 1 to 3. Most of them are the smallest unit type, 59 square meters, while the standard 84-square-meter units are difficult to find.
According to nearby brokers, the lowest new jeonse price for the 59-square-meter unit at the apartment is 650 million won. That is more than 300 million won higher than listings using the lease renewal right. A broker inside the complex said, "Because there is nowhere to move with the amount people paid two years ago, many are trying to use the renewal right," adding that "even if the price is raised to 500 million won, the only options are standalone apartments near Doksan Station or jeonse homes in Anyang."
Jeonse listings themselves are not abundant either. Another real estate agent said, "As multi-home owners have sold off many of their properties, jeonse listings have fallen sharply," and asked, "If that were not the case, would there really be more people looking to buy than to rent?"
This is not just a problem in Geumcheon-gu. As of the 29th, only three districts had jeonse listings in the double digits: Geumcheon-gu with 77, Jongno District with 66, and Jungnang-gu with 71. Four districts had listings in the 100s: Dobong District with 134, Gwanak District with 148, Guro District with 149, and Jung-gu with 177. Excluding the three Gangnam districts, no single district has more than 1,000 apartment jeonse listings.
As the shortage of jeonse homes deepens, prices are rising. According to KB Real Estate’s July national housing price trend report, the average jeonse price for apartments in Seoul stood at 704.58 million won, up 1.2% from 696.19 million won the previous month. It was the first time on record that the figure exceeded 700 million won since the survey began.
Record-high jeonse prices are also being reported at a rapid pace. Although July is not over yet, Seoul apartment jeonse contracts reported at record highs reached 599 as of the 30th, already surpassing last July’s total by 36.8%.
Eunpyeong District recorded the most record-high reports at 60, followed by Gangdong District with 54 and Nowon District with 45. The top three districts were all on the outskirts of Seoul, where smaller units are common and demand from newlyweds and single-person households is high.
[email protected] Kwon Jun-ho Reporter