Seoul's Outer Districts See Monthly Rents Hit 3 Million Won Amid Jeonse Shortage

Seoul's rental market is experiencing a significant shift towards monthly rent payments, with even standard-sized apartments (84㎡) in outer districts now commanding prices over 3 million won per month. This trend is driven by a severe shortage of jeonse (lump-sum deposit) properties, a situation exacerbated by an increasing number of tenants renewing their leases and stricter regulations like the 'actual residence' requirement, which limit the availability of jeonse units.

The data reveals a stark decrease in available rental properties across Seoul, down 27.2% from the previous year. Outer districts have been hit hardest, with Seongbuk-gu seeing a 77.4% drop in listings, followed by Jungnang-gu (-74.1%) and Guro-gu (-68.6%). In contrast, more affluent areas like Seocho-gu saw a slight increase in listings, while Songpa-gu and Gangnam-gu experienced more moderate decreases.

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As the jeonse supply dries up, tenants are increasingly being forced to switch to semi-jeonse or monthly rent.

This "jeonse supply drought" is forcing tenants into higher monthly rent arrangements, fundamentally altering housing choices. Park Won-gap, a senior real estate expert at KB Kookmin Bank, noted that tenants are being "forced to switch to semi-jeonse or monthly rent" due to the scarcity of jeonse options. This situation is compelling a "forced restructuring of tenants' housing types" as the jeonse market tightens.

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The jeonse supply drought is compelling a forced restructuring of tenants' housing types.