Seoul Apartments Vanish from Jeonse Market, Rents Soar

In Seoul, the housing market is facing an unprecedented crisis as the availability of 'jeonse' (lump-sum key money deposit) apartments plummets. The Hankyoreh reports a nearly 50% reduction in jeonse listings compared to two years ago, a stark indicator of a market in deep flux. This 'disappearance of jeonse' is not merely an inconvenience; it signifies a fundamental shift that threatens to significantly increase housing costs for tenants. Experts point to the government's '10.15 Measures,' which imposed a two-year residency requirement, effectively halting 'gap investment' – a practice that previously supplied a substantial portion of jeonse market inventory. Compounding this is a general shortage of new housing supply in the capital. The consequences are palpable: existing tenants are increasingly opting to renew their contracts, further tightening the market. As a result, average jeonse prices have surged past 600 million won, a level not seen in over three years. This trend is not limited to jeonse; even 'wolse' (monthly rent) properties are becoming scarce and more expensive. The situation demands urgent policy intervention. As KB Kookmin Bank's chief real estate expert Park Won-gap suggests, we are at a critical juncture. Measures such as revising lease protection laws, expanding public housing, and increasing tax credits for monthly rent are crucial for a 'soft landing' and to prevent further hardship for Seoul's residents. The jeonse system has long been a cornerstone of housing stability in Korea, and its erosion poses a significant challenge to affordability and social equity.