📉 Seoul Apartment Jeonse Ratio at 12-Year Low — Is It a Good Time to Buy?
According to recent real estate data, the jeonse price ratio (rental-to-sale price ratio) in Seoul has hit a 12-year low. For foreigners living in Korea, this signals an important shift in the market. But what exactly is the jeonse ratio, and why does it matter for you as a potential buyer?
🔍 What is the Jeonse Ratio?
The jeonse ratio is calculated as (jeonse price ÷ sale price × 100).
For example, if a house costs ₩1 billion and the jeonse deposit is ₩500 million, the jeonse ratio is 50%.
This ratio tells you how much of the property's value is covered by a lump-sum rental deposit.
📉 What Does a Low Jeonse Ratio Indicate?
- Home prices are rising much faster than jeonse prices.
- This creates a bigger financial gap for renters looking to buy.
- A low ratio can signal investor-driven demand or a heating market.
📊 Seoul & Gangnam vs Other Regions
- Seoul average jeonse ratio: 53.5% (as of April 2025)
- Gangnam's jeonse ratio: 40.7% — one of the lowest nationwide
- Historical high (2016–17): Seoul 75%, Gangnam 64.4%
A 40% ratio means buyers must fund 60% of the property in cash or loans.
📈 Where Jeonse Ratios Are Rising (Opportunity Zones)
- Yongin Suji District: 66.9%
- Nowon District: 54.6%
- Busan Haeundae: 65.0%
These areas are seeing rising jeonse prices while sale prices remain steady — meaning lower entry cost for ownership.
🏠 Is Now the Time to Buy?
If your current jeonse deposit is close to 60–70% of a nearby home’s value, it might make sense to consider converting your rent to ownership by adding just ₩100–200 million.
📌 Summary
- Low jeonse ratio = rising home prices outpacing rental growth
- Gangnam is overheated, but many outer Seoul and suburban areas are still balanced
- For foreigners in Korea, this may be a rare window to buy at reasonable terms
Want to know more about foreigner-friendly real estate areas, financing, and jeonse structures? Stay tuned for our next post on “Buying Real Estate in Korea as a Foreigner: 2025 Guide.”
