As apartment prices in Seoul continue to rise sharply this year, even in areas below the mid-tier, which are driving the price increase, leases exceeding 1 billion won based on national floor space (84㎡ only) are appearing.
According to the Korea Real Estate Board on the 20th, the cumulative increase in rent for apartments in Seoul this year was 7.79% as of the second week of September, about 4.7 times the same period last year (1.16%).
Even in terms of the annual increase rate, it has already exceeded twice that of last year (3.77%) and is the highest level since 2015 (10.79%), when the jeonse crisis was severe due to the lack of jeonse supply.
In particular, in lower-middle-class areas where sales prices have risen significantly, leases in the price range of around 1 billion won, which are generally considered to be at the Han River Belt level, such as Mapo-gu, Yongsan-gu, and Seongdong-gu, are appearing.
Seongbuk-gu, which has the highest cumulative increase in sales prices in Seoul this year (14.01%), also has the highest rent increase rate in Seoul at 12.84%.
In this area, a new lease contract was signed on the 18th floor of Kukpyeong at Lotte Castle Classia in Gireum-dong for 1.1 billion won on the 15th of last month, and the 23rd floor of Kukpyeong at Raemian Gireum Centerpiece in Gireum-dong is listed for lease at 1.05 billion won.
In November of last year, the new contract price was in the low 800 million won range, but on the 30th of last month, the 84㎡ exclusive use of Graciel, Hanyang Suja, in Cheongnyangni Station, Yongdu-dong, Dongdaemun-gu, was contracted for lease on the 53rd floor for 1 billion won. Even now, mid-rise and above properties in this complex are priced at around 1 billion won.
Dongdaemun-gu is one of the representative regions with a steep increase in the middle and lower class, with a cumulative increase in sales prices of 10.59% and jeonse prices of 8.43% this year.
In Gangbuk-gu, where both sales and leases have recently shown a sharp rise, the asking price for a 84㎡ 12th floor lease at Hanwha Forenamia in Mia-dong has risen to 1.2 billion won. The most recent same-level jeonse transaction price was 950 million won on June 26 this year.
In Nowon-gu, where the cumulative rent increase rate is 12.25%, the second highest in Seoul after Seongbuk-gu, the 9th floor of Geonyeong 3rd Gukpyeong, Junggye-dong, in December 1995, was newly contracted for rent on the 11th of this month for 910 million won.
The jeonse rate (lease price compared to sale price) in the northeastern region, which includes Seongbuk-gu, Dongdaemun-gu, and Nowon-gu, is 55.8% on average, which is lower than the Seoul average (52.3%) and lower than other regions such as the southeastern region (45.8%), where Gangnam 3-gu is located.
Nam Hyeok-woo, a real estate researcher at Woori Bank, said, "The 1 billion won level jeonse price is equivalent to the Han River Belt level, if not the Gangnam 3 district," and added, "Like the sale price in the lower-middle class, a reference point for the jeonse price is created centering on new construction, so a price around 1 billion won can be formed in the asking price."
The government maintains a consistent position that expanding housing supply is the fundamental solution to stabilizing prices in the jeonse and monthly rent market, and has begun to quickly increase supply by mobilizing all available means, including purchase and rental housing.
Hong Ji-seon, a candidate for Minister of Land, Infrastructure and Transport, said in a written response to the personnel hearing submitted to the National Assembly, "The biggest reason for the sharp decline in monthly rent listings and price increases is the recent significant decrease in the number of occupancy in Seoul and the metropolitan area due to the sluggish construction starts that have continued since 2022. The most important policy for stabilizing the rental market is sufficient housing supply."
