Seoul Apartments with Monthly Rent Over 1 Million Won Increased by 48% Compared to Last Year

Seoul Apartments with Monthly Rent Over 1 Million Won
Account for 15,700 Transactions,
Making Up 35.0% of Total Monthly Rent Deals

[Asia Economy Reporter Hwang Seoyul] The number of apartments with monthly rents exceeding 1 million won has increased by approximately 48% compared to the previous year. Due to the impact of interest rate hikes, more tenants prefer monthly rent over jeonse (long-term deposit lease), leading to a rise in monthly rent prices.

On the 10th, real estate information provider Economy Man Lab analyzed the Ministry of Land, Infrastructure and Transport's actual transaction price statistics system and found that the total number of monthly rent transactions for Seoul apartments in the first half of this year (January to June) was 45,085 as of the previous day. Among these, apartments with monthly rents of 1 million won or more accounted for 15,788 transactions, representing 35.0% of the total. The number of transactions for apartments with monthly rents over 1 million won increased by 47.9% compared to last year (10,675 transactions).

As the volume of transactions for apartments with monthly rents exceeding 1 million won increases, the monthly rent price index is also trending upward. The Korea Real Estate Board's Seoul apartment monthly rent price index rose from 102 in January this year to 102.7 in June, an increase of 0.7 points. During the same period last year, the index remained flat, and in 2020, it actually decreased by 0.1 points.

In fact, monthly rent prices in individual complexes are also rising. In Jamsil-dong, Songpa-gu, Seoul, 'Resentz' (exclusive area 84.99㎡) had a new contract last June with a deposit of 100 million won and a monthly rent of 2.7 million won. However, in June this year, a new contract for the same area was signed with a deposit of 100 million won and a monthly rent of 3.8 million won, marking a 1.1 million won increase in monthly rent within one year. In Apgujeong-dong, Gangnam-gu, 'Miseong 1st Complex' (105.65㎡) was contracted last June with a deposit of 100 million won and a monthly rent of 2.6 million won, but this June, a new contract was signed with the same deposit and a monthly rent of 3.5 million won, resulting in a 900,000 won increase in monthly rent.

Hwang Hansol, a research fellow at Economy Man Lab, said, "Due to the base interest rate hike, tenants find it more advantageous to pay monthly rent rather than interest on jeonse loan funds, leading to increased demand for monthly rent and rising prices."

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