Seoul's Jeonse Shortage Worsens, Supply-Demand Index Hits Highest Since June 2021

Chosun Ilbo reports on a growing crisis in Seoul's housing market: the 'jeonse난,' or jeonse shortage. This isn't just a minor inconvenience; it's a sign of deep-seated issues affecting countless families striving for stable housing in the capital. The rental supply-demand index, a key indicator we closely monitor, has surged to levels not seen since the peak of the last rental price surge in mid-2021.

What's driving this? Several factors, as the article points out. Firstly, the number of new jeonse properties hitting the market has dwindled. Landlords are either hesitant to list, perhaps anticipating further price increases or opting for other rental arrangements. Compounding this is the government's continued emphasis on 'real-occupancy' policies, which, while intended to curb speculation, inadvertently tightens the supply for renters who rely on the jeonse system.

This imbalance is stark. The index, which hovers around 100 as a baseline, is now soaring towards 200. This signifies a dramatic oversubscription for jeonse rentals – many more tenants are desperately searching for properties than there are homes available. For ordinary citizens, this means increased competition, rapidly rising rental prices, and the constant anxiety of finding or keeping a home in Seoul. This situation underscores the persistent challenges in balancing housing supply, demand, and policy in one of Asia's most dynamic, yet housing-stressed, capitals.