Seoul Jeonse lease-deposit prices have risen more than five% this year [1], marking an increase more than five times the level seen last year [1].

The surge reflects a critical shortage of rental properties in the capital, placing significant financial pressure on tenants and granting landlords substantial bargaining power.

Market data shows a continuous upward trend lasting 73 weeks [2], with prices recently growing at a rate of approximately 0.3% per week [2]. The Jeonse supply index has now returned to levels seen in early 2021 [1], a period previously regarded as a peak for rental shortages.

In the Seongdong-gu district, individual contracts for large apartment complexes illustrate the steep climb. One 84-square-meter unit saw its deposit rise to 10.95 billion KRW [2], an increase of 1.5 billion KRW over just two months [2]. Another large unit reached a deposit of 13 billion KRW [2], which was a 2 billion KRW increase over three months [2].

Real estate professionals said the market is currently dominated by property owners. "In cases like this, there are not many Jeonse properties available and prices have risen a lot, so trading is not easy," said Kwon Hyo-ju, a licensed real estate agent in Seongdong-gu [2]. Kwon said that owners are driving the prices higher and currently hold the advantage in negotiations [2].

This lack of available inventory has created a market where landlords can set prices with little resistance. Analysts said there is currently no sign of a "brake" to slow the acceleration of these deposits [1].

“Seoul Jeonse lease-deposit prices have risen more than 5% this year”

The return of the Jeonse supply index to early-2021 levels suggests a systemic shortage of lease-deposit rentals in Seoul. Because Jeonse is a unique Korean system where tenants provide a large lump-sum deposit instead of monthly rent, these rapid price hikes create a high barrier to entry for new renters and force existing tenants to secure additional loans, potentially increasing household debt across the city.