Jeonse deposits for mid-sized apartments in Seoul's northern districts have topped 1 billion won ($720,000), closing the gap with pricier riverside complexes. Deposits on 84-square-meter units — the most common size in Korea — have crossed that threshold in Seongbuk and Nowon districts.
Seoul apartment jeonse prices — a Korean lease system requiring a large lump-sum deposit instead of monthly rent — have risen 7.79% so far this year as of the 14th, 4.7 times the 1.66% gain in the same period last year, according to the Korea Real Estate Board on the 21st.
The increase has been steepest in the northern part of the city. Seongbuk District led all 25 of Seoul's districts with a 12.84% gain, followed by Nowon at 12.25% and Dongdaemun at 8.43%. By contrast, Gangnam District rose 2.42% and the southeastern area averaged 6.03%, both below the citywide figure.
Recorded transactions show the same trend. An 84-square-meter unit at Lotte Castle Clasia in Seongbuk's Gireum neighborhood signed a new lease at 1.1 billion won on Aug. 15, while a comparable unit at the nearby Raemian Gireum Centerpiece changed hands at 1.05 billion won in July. Two leases each at 1 billion won were recorded between June and August at Cheongnyangni Station Hanyang Sujain Grasiel and Cheongnyangni Station Lotte Castle Sky-L, both 84-square-meter units in Dongdaemun District. Jeonse deposits in Dongdaemun stood in the low 800 million won range in November last year, meaning they have climbed by nearly 200 million won in less than a year.
Behind the rise is a sharp drop in new homes ready for occupancy. Completions in the northeastern area this year were limited to the 761-unit Cheongnyangni Station Lotte Castle Hi-Luche and the 299-unit Dobong Atera. The southeastern area, by comparison, saw a cluster of large complexes come online, including Raemian Trinione with 2,091 units, DH Bangbae with 3,064 units and Jamsil Le-El with 1,865 units. Citywide, move-ins fell 31.9% to 25,281 units this year from 37,103 last year, and are projected to decline further to 18,682 next year.
Lending curbs and designations of land transaction permit zones are also squeezing the lease market. Purchases inside those zones carry an obligation for the buyer to live in the home, so buyers move in themselves and listings for lease shrink as a result. Analysts said the reduced supply of rental units is bound to push prices higher in the near term.
Pressure is more pronounced in areas with strong demand tied to school districts, such as the Gireum New Town in Seongbuk District and the cram school cluster in Nowon's Junggye neighborhood, where households find it difficult to relocate. The government's recent decision to extend by one year the grace period on owner-occupancy requirements for homes sold with a tenant in place, and to guarantee tenants' right to request a lease renewal, reflects the same market conditions.
