Due to Monthly Rent Burden... 7 out of 10 Seoul Apartment Monthly Rent Contracts Are for 'Small Units'

Among the monthly rental contracts for apartments signed in Seoul this year, 7 out of 10 were for small units (exclusive area of 60㎡ or less). This is interpreted as an increase in the proportion of small-sized transactions, which are relatively less burdensome, amid the continued rise in monthly rents.

[Image provided by Real Estate R114]

On the 9th, Real Estate R114 analyzed the actual transaction data of monthly rent from the Ministry of Land, Infrastructure and Transport and found that among 14,317 monthly rental transactions for Seoul apartments contracted until February this year, the proportion of monthly rents for units with an exclusive area of 60㎡ or less was 66.0% (9,450 cases). This is an increase of 8.6 percentage points compared to the same period last year (57.4%). By exclusive area, transactions were 3,617 cases (25.3%) for 60-85㎡ units and 1,250 cases (8.7%) for units over 85㎡, respectively.

Looking at the monthly rent prices of Seoul apartments transacted until February this year by exclusive area category, the average monthly rent deposit per square meter was 2.46 million KRW for units 60㎡ or less, 3.57 million KRW for 60-85㎡ units, and 4.13 million KRW for units over 85㎡, indicating that the smaller the transaction area, the lower the price burden. The average monthly rent also corresponded proportionally to the amount and area, with 560,000 KRW for 60㎡ or less, 1.24 million KRW for 60-85㎡, and 1.96 million KRW for over 85㎡ units.

A representative from Real Estate R114 stated, “Due to tenants’ preference for monthly rent and landlords seeking expected returns above market interest rates, monthly rent prices for Seoul apartments have been on the rise recently. As tenant demand to reduce housing costs increases in this high inflation era, the proportion of monthly rental transactions for relatively less burdensome small apartments is expected to rise. In particular, an increase in transactions is anticipated in mid-to-low price areas where many apartments have deposits of 400 million KRW or less and are eligible for low-interest loans such as the Buteemok loan.”

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