Jeonse Prices Surge in Seoul's Oldest Apartments, Outpacing Newer Units

Older apartments in Seoul, particularly those exceeding 20 years in age, experienced the most significant surge in jeonse (lump-sum deposit) prices in July. This marks a notable shift in the rental market dynamics compared to previous periods.

According to data from the Korea Real Estate Board, jeonse prices for apartments over 20 years old in Seoul rose by 1.45% in July. This figure surpasses the increases seen in newer and mid-aged apartments. For comparison, apartments under five years old saw a 1.03% increase, those between five and 10 years old rose by 1.24%, 10 to 15 years old by 1.33%, and 15 to 20 years old by 1.21%.

This trend contrasts with the previous year, when apartments aged between five and 20 years generally exhibited higher jeonse price growth. The current data indicates a reversal, with the jeonse price increase for apartments over 20 years old consistently leading since January, except for May. The upward trend for these older units has now continued for four consecutive months.

A concrete example of this phenomenon is an 84-square-meter unit in Yeoksam Lucky, built in 1995, which was recently leased for 1.1 billion won. This marks the first time a jeonse contract for this unit has surpassed the 1.1 billion won threshold, illustrating the escalating rental costs for established properties.