Seoul housing market sees surge in lease prices driving purchase shift

Rapid increases in jeonse (lease) prices across Seoul’s outer districts are narrowing the gap between rental and sale values, prompting many renters to consider buying. In Dobong‑gu’s Sangmun‑dong, a 34 m² unit listed for 230 million won in jeonse is only 30 million won below the 260 million won asking price for a comparable sale. Similar patterns appear in Nowon‑gu’s Junggye‑dong, where an 84 m² apartment’s sale price of 650 million won is just 100 million won above its jeonse price, after the latter jumped 150 million won in four months.

KB Real Estate reported Seoul’s overall jeonse‑to‑sale price ratio at 50.28% last month, with lower ratios in high‑price districts such as Gangnam (38.16%) and higher ratios exceeding 60% in northern districts like Dobong, Gangbuk and Eunpyeong. Industry analysts warn that sustained jeonse spikes may trigger “FOMO‑driven” buying, emphasizing cautious appraisal of resale potential and market trends before converting a lease into a purchase.