Seoul metropolitan area apartment jeonse deposit gaps between new contracts and renewals widened significantly from January to June, according to Zigbang analysis released on the 6th. The gap for 84㎡ units in Seoul expanded from 43.75 million won in January to 80 million won in June, nearly doubling within six months. The widening gap stems from immediate market price reflection in new contracts versus regulatory caps and existing terms constraining renewal increases, creating a dual-pricing structure in the jeonse market.
Seoul 84㎡ Jeonse Gap Doubles to 80 Million Won in Six Months
Zigbang analyzed jeonse transactions from January to June across identical complexes and unit sizes in the Seoul metropolitan area. For Seoul apartments with 84㎡ exclusive area, new contract deposits rose from 656.25 million won in January to 700 million won in June. Renewal deposits increased only from 612.5 million won to 620 million won during the same period, resulting in the 43.75 million won gap expanding to 80 million won.
For 59㎡ units in Seoul, the new-renewal deposit gap more than doubled from 35 million won in January to 77.5 million won in June.
![Seoul Jeonse Price Gap Analysis]()
Source: Zigbang
Gyeonggi 84㎡ Gap Expands Fivefold While Incheon Remains Stable
Gyeonggi Province showed similar trends. The deposit gap for 59㎡ units increased modestly from 20 million won in January to 22 million won in June. However, 84㎡ units saw a dramatic expansion from 10.5 million won to 51 million won during the same period.
Incheon displayed the smallest gaps in the metropolitan area as of June, with 59㎡ units showing a 9.5 million won difference and 84㎡ units a 7.12 million won difference between new contracts and renewals.
Renewal Rates Rise as Tenants Avoid Moving Costs
Apartment renewal rates increased steadily across the region. Seoul's renewal proportion rose from 47.4% in January to 55.0% in June. Gyeonggi Province saw renewal rates climb from 38.6% to 45.4% during the same period.
Zigbang attributed the trend to rising deposit burdens for new contracts amid limited jeonse supply and price increases. Existing tenants increasingly choose renewals when factoring in additional moving and transaction costs.
![Renewal Rate Trends]()
Source: Zigbang
Zigbang Projects Continued Gap Expansion Amid Supply Shortage
Zigbang stated, "The deposit burden for new contracts has grown due to jeonse supply shortages and rising prices, and tenants are increasingly selecting renewals when considering additional costs. We project the jeonse deposit gap between new contracts and renewals will continue expanding as long as jeonse price strength persists."
FAQ
What caused the Seoul jeonse deposit gap to widen from January to June?
The gap widened because new contracts immediately reflect current market prices, while renewals remain constrained by existing contract terms and rental increase regulations. Limited jeonse supply and rising prices drove new contract deposits higher, while renewal deposits increased only modestly due to regulatory caps.
Why are Seoul tenants choosing renewals over new contracts?
Tenants increasingly opt for renewals to avoid the higher deposit requirements of new contracts and the additional costs associated with moving and new transactions. Seoul's renewal rate rose from 47.4% in January to 55.0% in June as the new-renewal deposit gap expanded to 80 million won for 84㎡ units.
