Even One-Room Monthly Rent Rebounds After COVID-19 Slump... "Jeonse Crisis Spreads to Villas"

Cafe November Rental Market Report Released

[Asia Economy Reporter Onyu Lim] The rental housing shortage originating from apartments is spreading to villas. Last month, monthly rents for two- and three-room units (under 60㎡) in Seoul continued to rise sharply, and even the monthly rent for studio apartments (exclusive area under 33㎡), which had stalled due to the impact of the novel coronavirus (COVID-19), rebounded after five months.

According to the 'November Dabang Rental Price Report' released by Dabang on the 19th, the average monthly rent for studio apartments in Seoul last month was 470,000 KRW. This marks a 2% increase compared to the previous month, ending a five-month downward trend.

Among Seoul's 25 districts, 14 districts saw an increase, 4 remained stable, and 7 experienced a decline. The district with the largest increase was Mapo-gu, recording 540,000 KRW, rising 10% in one month. Following were ▲Gwangjin-gu (500,000 KRW) ▲Gangnam-gu (660,000 KRW) ▲Gangbuk-gu (410,000 KRW) ▲Gangseo-gu (390,000 KRW) ▲Jungnang-gu (430,000 KRW), all rising 8-9%. Conversely, ▲Jongno-gu (500,000 KRW) and ▲Jung-gu (540,000 KRW) fell by 7-9%.

Studio apartment rents near major universities in Seoul generally showed an upward trend. Chung-Ang University (440,000 KRW) saw a significant 7% increase compared to the previous month, while Hongik University (510,000 KRW) and Korea University (420,000 KRW) rose 5-6%. Yonsei University (440,000 KRW) and Hanyang University (460,000 KRW) experienced a 2% decline.

The average monthly rent for two- and three-room units (exclusive area under 60㎡) in Seoul was 840,000 KRW, a 6% increase from the previous month. As the rental housing shortage that began with apartments spread to the villa market, rents for two- and three-room units, which can substitute apartments, have been rising sharply since August. The average monthly rent for these units was 690,000 KRW in August, then rose to ▲720,000 KRW in September ▲790,000 KRW in October ▲840,000 KRW in November.

Seocho-gu (990,000 KRW) and Songpa-gu (870,000 KRW), which had shown a decline the previous month, jumped 7-8%, marking the largest increases. Following were ▲Gangbuk-gu (590,000 KRW) ▲Gwangjin-gu (740,000 KRW) ▲Seodaemun-gu (710,000 KRW), all rising 4-5%.

A representative from the Station3 Dabang Data Analysis Center explained, "The average monthly rent for villa two- and three-room units, which serve as alternative housing to small apartments, has been rising since August, and even studio apartment rents, which had been declining continuously after the COVID-19 resurgence, have rebounded. The rental housing shortage that started with apartments has spread to villas, affecting the villa rental market as well."

This content was produced with the assistance of AI translation services.