Seoul apartment prices accelerate rise in May; monthly rent overtakes Jeonse in June

Seoul's apartment market experienced a significant uptick in May, with the transaction price index for sales rising 1.33% from the previous month, a notable acceleration from April's 0.20% increase. Compared to May of last year, prices have surged by 13.47%. The index for Jeonse, or long-term lease deposits, also climbed, showing a 1.04% increase from April. The data, compiled by Korea Real Estate Board based on transactions from May 1 to May 31, reflects a robust market recovery.

Analysis by Seoul's five major regions revealed price increases across all areas. The central downtown district saw the highest surge at 2.52% month-on-month, followed by the southwest (1.53%), northeast (1.51%), northwest (1.27%), and southeast (0.58%). Price growth was also observed across different apartment sizes, with units between 40㎡ and 60㎡ experiencing the largest increase at 1.79%. Smaller units (under 40㎡) rose by 1.25%, medium-small units by 1.15%, medium-large units by 1.76%, and large units by 0.94%.

The Jeonse market also saw widespread gains, with the northeast region recording the highest increase at 2.25%. Other regions like the northwest (1.20%), southwest (0.85%), and southeast (0.03%) also saw rises, though the central downtown district experienced a slight decrease of 0.39%. Smaller Jeonse units saw the most significant growth (1.43%), while large units saw a decrease of 0.67%.

Shifting trends were evident in the rental market for June. As of June 15, the number of apartment sales transactions in Seoul decreased by 48.0% compared to May. However, the proportion of transactions under 1.5 billion won increased to 77.9%. More strikingly, monthly rent transactions in June accounted for 54.1% of the market, surpassing Jeonse transactions (45.9%) for the first time. The proportion of contract renewals, particularly those using the right to request contract renewal, also increased compared to previous periods, indicating a dynamic rental landscape.