In Seoul's Jeonse market, 64% of real estate agencies reported that there are more people looking for rentals than those offering them. However, only 9.9% of agencies indicated that transactions increased compared to the previous month. The lack of available properties and rising deposits have led many tenants to either accept landlords' increased rental terms or move to cheaper areas, including semi-rent and monthly rent options.
On October 18, an analysis by Aju Economy of the Korea Research Institute for Human Settlements' 'September 2026 Real Estate Market Consumer Sentiment Survey' revealed that 64% of participating Seoul agencies noted a higher demand for Jeonse rentals compared to those looking to lease properties. In contrast, 9.8% reported more landlords than tenants, while 26.2% said the numbers were similar.
When asked about changes in Jeonse transactions, only 9.9% of agencies reported an increase in September compared to August. Meanwhile, 63.5% said transactions remained the same, and 26.6% noted a decrease. This means that nine out of ten agencies did not see an increase in transactions from the previous month.
The percentage of agencies reporting more tenants rose slightly from 63.2% in August to 64% in September. However, the percentage of those reporting a decrease in transactions fell from 29.2% to 26.6% during the same period.
In practice, the shortage of available properties and rising deposits are impacting tenants' housing choices. A real estate agent in the Mimyung, Misung, and Samho areas of Nowon District explained, “Last year, you could find small Jeonse properties for around 250 million won, but now they have all disappeared, and the remaining ones are priced at over 350 million won.”
According to the Ministry of Land, Infrastructure and Transport's real transaction price disclosure system, two contracts in the area increased the existing Jeonse deposit from 270 million won to 320 million won in August. Nearby agencies reported that due to the lack of available Jeonse properties, some tenants are agreeing to higher deposits to remain in their current homes.
Some tenants are also looking beyond their desired areas due to deposit burdens. The same agent noted that many tenants who initially inquired about Jeonse homes around Kwangwoon University Station have shifted their focus to relatively cheaper areas like Banghak-dong in Dobong District due to price concerns.
There are also cases where tenants are opting for semi-rent or monthly rent. An agent near Gwanak Dream Town in Gwanak District stated, “Since we cannot raise the Jeonse deposit to the landlord's desired amount, we sometimes switch to semi-rent or monthly rent.”
In Gwanak Dream Town, which has 3,544 units, there were seven monthly rent listings for 59 square meters registered on a portal site as of October 16. Some tenants are reportedly inquiring about monthly rent options in their current neighborhood or within the same complex even before their existing Jeonse contracts expire.
Yang Ji-young, a specialist at Shinhan Premier Pathfinder, commented, “The biggest issue right now is the shortage of Jeonse properties. There are not many new listings, but deposits are rising, and it is becoming difficult to obtain Jeonse loans.”
She added, “Some actual demanders, who find it hard to bear the high housing costs in Seoul, are ultimately deciding to purchase apartments in the outskirts of the city where they can utilize loans. In a situation where interest rates are rising, this could further increase their housing cost burdens.”
* This article has been translated by AI.
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