6 out of 10 high-priced monthly rental apartments traded this year are in Yongsan-gu

This Year's Highest Monthly Rent, Yongsan-gu 'Hannam The Hill'

High Monthly Rent Near the Han River

Monthly Rent Burden for Ultra-High-End Apartment Tenants Increasing Every Year

[Asia Economy Reporter Kim Min-young] It has been revealed that 6 out of 10 high-priced monthly rent apartment contracts traded this year were in Yongsan-gu. This is interpreted as a phenomenon where the interest of wealthy individuals seeking high-priced monthly rents has shifted to some areas north of the Han River, as the ultra-high-end monthly rent apartments in Gangnam have aged and lost preference.

On the 22nd, Real House, a real estate appraisal specialist company, analyzed the Ministry of Land, Infrastructure and Transport's lease reporting data and found that 6 out of the top 10 high-priced monthly rent apartment contracts traded this year were in Yongsan-gu. Of the remaining 4 contracts, 3 were in the three Gangnam districts, and 1 was in Seongdong-gu.

Dogok-dong Tower Palace Phase 1, which recorded ultra-high monthly rents in Gangnam, was completed in 2002; Samsung-dong I-Park in 2004; and Daewoo Royal County in Cheongdam-dong in 2003, all exceeding 18 years since completion. As a result, tenants who prefer newly built apartments have crossed the Han River bridges to find new apartments such as Acro Seoul Forest and Nine One Hannam.

In the case of the highest-priced monthly rent apartments, the tenants' monthly rent burden is increasing every year. This is also confirmed by the jeonse-to-monthly rent conversion rate, which is the rate applied when converting a jeonse (lump-sum deposit lease) to a monthly rent. Based on the same area jeonse price, the conversion rate was 5.8% in 2017 and rose to 6.8% this year. Although the conversion rate increased by only 1 percentage point, the monthly rent burden for Hannam The Hill increased by 3.73 million KRW.

Regarding the preference for ultra-high monthly rents despite the high rent burden, Kim Sun-ah, head of the sales analysis team at Real House, explained, "Ultra-high-end apartment sales require strict proof of funding sources and have a high acquisition tax burden. However, when living on monthly rent, there is no property tax burden, and monthly rent can be treated as an expense, which is advantageous for high-income earners."

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