In the Mapo District of Seoul, only one jeonse listing is available in the 2,000-unit Mapo Taeyoung apartment complex. All four jeonse contracts confirmed from July to September this year were renewals. No new contracts with incoming tenants have been reported, as existing residents continue to extend their leases.
A local real estate agent in Mapo stated, "Almost all contracts are renewals. With jeonse prices rising significantly, moving incurs additional costs like brokerage fees and moving expenses, leading many to prefer staying in their current homes rather than searching for new ones."
As the number of jeonse listings in Seoul decreases and the burden of deposits increases, many tenants are opting to forgo moving. Even when searching for new jeonse homes before their contracts expire, tenants find it challenging to locate similar options in their current neighborhoods, prompting them to either renew their contracts or consider monthly rent.
According to the real estate platform Asil, the Junggye Jugong 3 Complex in Nowon District, which consists of over 1,500 units, has no jeonse listings available. No jeonse transactions have been confirmed since last month.
In a nearby complex, a jeonse contract utilizing the renewal request right was signed earlier this month for a deposit of 480 million won. Last month, a new jeonse contract was reported with a deposit of 650 million won.
A real estate agent in Sangye-dong, Nowon District, noted, "There have been almost no jeonse listings in the past month, significantly fewer than last year. In a complex with 2,000 units, only one or two new jeonse listings have emerged." The agent added, "There are consistent inquiries about jeonse, but properties with favorable conditions are contracted as soon as they become available."
In Mokdong, Yangcheon District, there is also a reported shortage of jeonse listings compared to demand. A local broker near Mokdong 7 Complex mentioned, "There is a steady stream of clients looking for jeonse. When a listing appears, an average of three to four people view it within a day, and many contracts are signed immediately after the property is listed."
Even when tenants find a jeonse home, they must prepare for increased deposits along with brokerage fees and moving costs. Those looking to change their living conditions are often choosing to stay in their current homes due to the expenses associated with moving.
Amid the shortage of listings, landlords are becoming more selective about tenants. A real estate agent in Nowon District reported, "Landlords are checking the number of family members and whether tenants have pets, and they inquire about income or occupation for monthly rent." As landlords gain more leverage, there is a growing trend to accommodate their demands during the leasing process.
Yoo Seon-jong, a professor in the Department of Real Estate at Konkuk University, stated, "The jeonse deposit itself has increased, and the rental market is shifting from jeonse to monthly rent." He added, "The transition from jeonse to monthly rent is a transitional phenomenon occurring as the rental market evolves, and currently, the lack of listings is creating a landlord-dominant market."
Experts believe that policy factors, such as actual residence requirements, are also impacting the supply of jeonse. The difficulty tenants face in finding jeonse may lead them to remain in their current homes or switch to monthly rent, thereby narrowing their housing options.
Ko Jun-seok, a professor at Yonsei University's Sangnam Business School, noted, "Due to actual residence requirements and the designation of land transaction permission zones, the number of properties that can be supplied as jeonse is decreasing. The expiration of rental periods for registered rental business operators is also contributing to the decline in jeonse availability." He added, "As jeonse prices rise significantly, tenants are finding it increasingly difficult to afford jeonse, leading to a trend of moving to monthly rent. This may result in tenants renewing their existing homes or shifting to monthly rent if they cannot secure new jeonse."
* This article has been translated by AI.
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