Even Two- or Three-Room Villas in Seoul Are Rare... Monthly Rent Soars Past 800,000 Won

Apartment Jeonse Shortage Causes Even Non-Apartment Monthly Rent to Surge

[Image source=Yonhap News]

[Asia Economy Reporter Onyu Lim] As the apartment jeonse (long-term lease) shortage spreads to the non-apartment market, the average monthly rent for small row houses, multi-family houses, and detached houses (hereafter referred to as villas) in Seoul has soared to an all-time high.

According to the 'Dabang Rental Price Report' released on the 11th by the real estate information platform Dabang, last month the monthly rent for villas in Seoul with two- or three-room layouts under 60㎡ (exclusive area) was 840,000 KRW per 10 million KRW deposit. This is a 6% increase from 790,000 KRW the previous month. It is the first time the average monthly rent in this size range has reached the 800,000 KRW level.

The areas with the steepest increase were Seocho and Songpa districts. In Seocho-gu, the average monthly rent rose 8% from 920,000 KRW to 990,000 KRW, and in Songpa-gu, it increased 7% from 810,000 KRW to 870,000 KRW. Although Gangnam-gu, the most expensive district for monthly rent in Seoul, saw only a 1% increase, it set a new record high of 1,200,000 KRW. Other districts such as Gangbuk-gu (590,000 KRW), Gwangjin-gu (740,000 KRW), and Seodaemun-gu (710,000 KRW) also rose by 4-5%. Seodaemun-gu entered the 700,000 KRW range for the first time. However, monthly rents in Seongdong and Yeongdeungpo districts decreased by about 3% compared to the previous month.

Recently, the average monthly rent for two- and three-room units in Seoul has sharply increased as follows: ▲May 610,000 KRW ▲June 670,000 KRW ▲July 690,000 KRW ▲August 690,000 KRW ▲September 720,000 KRW ▲October 790,000 KRW ▲November 840,000 KRW. This trend is attributed to the jeonse crisis, which intensified after the implementation of the new lease protection laws such as the contract renewal request right and the rent ceiling system at the end of July, spreading from apartments to non-apartments.

Last month, monthly rents for studio apartments under 33㎡ in Seoul also rebounded after five months. The average monthly rent in November was 470,000 KRW, a 2% increase from the previous month. 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, and Hongik University (510,000 KRW) and Korea University (420,000 KRW) also rose by 5-6%. In contrast, Yonsei University (440,000 KRW) and Hanyang University (460,000 KRW) saw a 2% decrease.

A representative from Station3 Dabang Data Analysis Center explained, "The jeonse shortage that started in apartments has spread to villas, affecting the villa monthly rent market as well."

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