Korea Apartments, Loans and Jeonse — 2026-10-25
Seoul apartment prices extended their record-breaking rise to 89 consecutive weeks, though the pace slowed to 0.13% amid cooling in the Gangnam district. Meanwhile, jeonse deposit prices surged as monthly rents jumped 7.3%, creating a polarized market where luxury areas dip while outer districts and smaller units see intense demand.
Korea Apartments, Loans and Jeonse — 2026-10-25
Top developments
Seoul Prices Rise 89 Weeks Straight, But Growth Slows
For the 89th consecutive week, Seoul apartment sale prices increased, setting a new record for the longest period of gains. However, the weekly growth rate slowed to 0.13% in the third week of October, marking the first deceleration in three weeks. This slowdown is largely driven by declining prices in the Gangnam and Seocho districts, which have fallen for ten straight weeks due to tax policy uncertainties. Despite this, mid-to-lower tier areas and southern Gyeonggi maintained strong upward momentum, with Hwaseong Dongtan rising 20.83% year-to-date.
Jeonse Prices Surge as Monthly Rents Jump 7.3%
The rental market is experiencing significant strain as jeonse (lump-sum deposit) prices continue to rise, approaching the high points seen in early 2022. Concurrently, monthly rent costs surged by 7.3%, a move that analysts attribute to government policies reducing jeonse listings rather than an increase in single-person households. Seoul’s jeonse prices have also risen for 89 straight weeks, with 22 districts seeing increases of over 10% in the last two years, exacerbating the housing affordability crisis.
Tiny Apartments Surge 16% Amid Loan Tightening
Demand for small apartments (40㎡ or less) in Seoul has spiked, with prices rising 15.9% to an average of 459.89 million won. This surge is driven by a drying up of rental listings and stricter mortgage rules, which push buyers toward more affordable, smaller units. The trend highlights a shift in buyer behavior as larger homes become increasingly inaccessible due to high prices and regulatory hurdles.
Bank of Korea Holds Rates Amid Supply Concerns
The Bank of Korea maintained its base rate, aligning with economist forecasts, even as President Lee Jae-myung called for boosting housing supply. The central bank continues to warn that inconsistent policy could fuel expectations of rising home prices and increase household debt risks. This decision underscores the delicate balance regulators face in managing the property market without triggering broader financial instability.
Local view
National Assembly Scrutinizes Jeonse and Rent Measures
During the National Assembly’s Land, Infrastructure and Transport Committee audit, both ruling and opposition parties agreed on the urgent need for measures to address the jeonse and rental market pressures. Land Minister Hong Ji-sun reiterated predictions that housing prices would stabilize by year-end, but lawmakers expressed skepticism given the continued surge in rents and deposits.
DSR Rules for Corporate Housing Loans Under Review
The Financial Services Commission is considering applying Debt Service Ratio (DSR) regulations to corporate housing loans provided by companies to their employees. This move follows revelations that some large corporations have extended over 1 trillion won in such loans, raising concerns about regulatory arbitrage and fairness compared to standard bank mortgages.
Redevelopment Displacement Fears Mount
With 48,249 housing units slated for demolition due to redevelopment projects in the next 2-3 years, there are growing fears about displacement, particularly in Yongsan District which accounts for 8,336 units. The reduction in affordable rental stock in redevelopment zones is expected to tighten the rental market further.
Context & numbers
- Seoul Apartment Prices: Up 0.13% weekly (89th consecutive week of gains).
- Real Transaction Prices: Seoul apartment actual transaction prices rose 15.5% year-over-year, with mid-to-large sized units (85-135㎡) seeing the largest gains.
- Gyeonggi Province: Overall gains eased, but southern areas like Hwaseong Dongtan continued to rise, with Dongtan up 20.83% year-to-date.
- Housing Permits: Seoul housing permits jumped 74% over the last six months, signaling potential future supply increases.
- Jeonse/Rents: Monthly rents surged 7.3% YoY; jeonse prices in 22 Seoul districts rose over 10% in two years.
On the radar
- Year-End Stabilization Forecast: Land Minister Hong Ji-sun maintains that prices will stabilize by year-end, a claim that remains under heavy scrutiny by opposition parties and market analysts.
- Corporate Loan DSR Implementation: Watch for final decisions on whether and how the DSR rules will be applied to corporate housing loans, which could significantly impact employee home-buying power in large conglomerates.
- Supply Normalization Timeline: Deputy Prime Minister Lee Hyeong-il stated that supply will increase from 2028, suggesting that current shortages will persist for at least another two years.
This content was collected, curated, and summarized entirely by AI — including how and what to gather. It may contain inaccuracies. Crew does not guarantee the accuracy of any information presented here. Always verify facts on your own before acting on them. Crew assumes no legal liability for any consequences arising from reliance on this content.
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