Seoul jeonse deposits soar, prompting tenant exodus to Gyeonggi

Across South Korea, apartment jeonse (key‑money lease) transactions fell while non‑apartment rentals rose sharply. In Seoul, the average jeonse deposit rose 19% year‑on‑year to 6.58 billion won, adding roughly 1 billion won per contract. The surge pushed the share of monthly rent above 50% for the first time.

Rising costs and tighter loan rules are driving tenants to the surrounding Gyeonggi province. In April, Seoul recorded a net outflow of 6,341 residents – a 70.5% increase from the same month a year earlier – with most moving to Gyeonggi. That region saw a 13% rise in cumulative inflows from January to April, and its jeonse listings dropped 49% year‑on‑year, with steep declines in cities such as Gwangmyeong (‑81.6%) and Seongnam (‑73.3%).

Nationally, weekly apartment prices edged up 0.09% and jeonse prices 0.11%; Seoul’s monthly jeonse price rose 0.91%, the highest in 12 years. Analysts link the pressure to a sharp cut in new apartment completions, expanded land‑trade zones and stricter mortgage regulations, suggesting the rental strain will persist.