Monthly Rent Over 2 Million Won for Multi-Unit and Multi-Family Housing Transactions Increase... Concentrated in Gangnam, Seocho, and Yongsan

Despite the real estate market downturn, transactions of multi-family and row houses with monthly rents exceeding 2 million KRW in Seoul increased by about 20%. These transactions were concentrated in Gangnam, Seocho, and Yongsan districts, highlighting a clear polarization.

A view of row houses and multi-family homes in the Songpa-gu area of Seoul. / Photo by Yonhap News

On the 16th, Station3, the operator of the real estate information platform 'Dabang,' analyzed the Ministry of Land, Infrastructure and Transport's actual transaction price statistics and found that from November last year to October this year, the volume of monthly rent transactions for multi-family and row houses in Seoul was 50,905 cases. This is a decrease of 3,674 cases (6.7%) compared to the previous year (November 2021 to October 2022), which recorded 54,579 cases.

The volume of monthly rent transactions for multi-family and row houses in Seoul had increased for two consecutive years with annual growth rates of 21.3% and 35.4% after recording 33,240 cases from November 2019 to October 2020, but it decreased for the first time in the most recent year.

On the other hand, the volume of high-priced monthly rent transactions exceeding 2 million KRW increased by 84 cases (19.2%), from 438 to 522 cases in the past year. The volume of high-priced monthly rent transactions had continued to rise since recording 126 cases from November 2019 to October 2020, with annual increases of 81.7% and 91.3% over two years.

In particular, high-priced monthly rent transactions were active in Gangnam, Seocho, and Yongsan districts. Gangnam recorded 187 cases (35.8%), Seocho 122 cases (23.4%), Yongsan 86 cases (16.5%), Songpa 33 cases (6.3%), and Jongno 22 cases (4.2%). Gangnam, Seocho, and Yongsan districts accounted for about 75.7% of the total.

Jang Junhyuk, Marketing Director of Dabang, said, "Despite the real estate market slump over the past year leading to a decrease in monthly rent transactions for multi-family and row houses in Seoul, high-priced monthly rent transactions have steadily continued," adding, "It appears that market polarization is becoming a reality."

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