Seoul Small Apartment Monthly Rent Over 1 Million Won, Up 43.9% Year-on-Year

Source=Gyeongje Man Lab

[Asia Economy Reporter Hwang Seoyul] It has been confirmed that the number of monthly rent transactions exceeding 1 million KRW for small apartments in Seoul (exclusive area of 60㎡ or less) has increased this year. As the preference for monthly rent has become more pronounced due to the base interest rate hike, prices are also trending upward.

On the 12th, real estate information provider Economy Man Lab analyzed the Ministry of Land, Infrastructure and Transport's actual transaction price statistics system and found that as of the previous day, the total number of jeonse and monthly rent transactions for small apartments in Seoul from January to September this year was 85,506. Among these, monthly rent transactions numbered 39,891, marking the highest figure since the Ministry of Land, Infrastructure and Transport began compiling related statistics in 2011 (based on January to September).

Among these, the number of monthly rent transactions for small apartments in Seoul with rent exceeding 1 million KRW was 7,190, a 43.9% increase compared to the previous year, accounting for 18% of all monthly rent transactions.

During the same period, the number of monthly rent transactions for small apartments in Seoul with rent between 100,000 and 490,000 KRW was 18,655, accounting for 46.8% of the total. ▲For monthly rent between 500,000 and 590,000 KRW, there were 14,046 transactions (35.2%) ▲100,000 to 199,000 KRW was 5,933 transactions (14.9%) ▲200,000 to 299,000 KRW was 951 transactions (2.4%) ▲300,000 to 399,000 KRW was 216 transactions (0.5%) ▲400,000 to 499,000 KRW was 70 transactions (0.2%) ▲500,000 to 999,000 KRW was 20 transactions (0.1%).

Monthly rent prices are also on the rise. 'Raemian Oksu Riverzen (59.25㎡)' located in Oksu-dong, Seongdong-gu, Seoul, was newly contracted last August with a deposit of 100 million KRW and monthly rent of 2.5 million KRW. However, in August this year, the same area was newly contracted with a deposit of 100 million KRW and monthly rent of 2.9 million KRW, marking a 400,000 KRW increase in monthly rent within one year.

'Mokdong New Town 14 (55.02㎡)' in Sinjeong-dong, Yangcheon-gu, was also newly contracted last August with a deposit of 100 million KRW and monthly rent of 650,000 KRW, but in August this year, the same deposit was paired with a monthly rent of 1 million KRW, increasing the monthly rent by 350,000 KRW over one year. 'Godeok Grassium (59.785㎡)' in Godeok-dong, Gangdong-gu also saw a 200,000 KRW increase in monthly rent over one year.

Hwang Hansol, a research analyst at Economy Man Lab, said, "As the Bank of Korea's base interest rate hike caused loan interest amounts to rise, apartment sales transactions have decreased, while demand for semi-jeonse and monthly rent has increased, leading to rising prices."

Meanwhile, the number of sales transactions for small apartments in Seoul from January to September this year was 5,297, a 70.3% decrease compared to 17,853 transactions during the same period last year.

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