All One, Two, and Three-Room Monthly Rents Increased in Seoul in December

Cafe 10-Day Rental Market Report Released

[Asia Economy Reporter Onyu Lim] In December last year, the average monthly rent for one-room, two-room, and three-room apartments in Seoul all rose simultaneously. The rent for one-room apartments increased by up to 7% in areas where office workers reside, such as Yeongdeungpo and Jung-gu, coinciding with the moving season. Similarly, the rent for two- and three-room apartments also rose by up to 7%, mainly in popular school districts like Gangnam-gu and Seocho-gu. Analysts suggest that the shortage of jeonse (long-term lease) caused by the revision of the college entrance system has also impacted the two- and three-room monthly rent market.

According to the 'Dabang Rental Price Report' released on the 10th by the real estate information platform Dabang, the average monthly rent for one-room apartments (exclusive area of 33㎡ or less) in Seoul in December was 530,000 KRW. This represents a 4% increase compared to the previous month, marking an upward trend after five months. In particular, Seocho-gu (590,000 KRW), Yeongdeungpo-gu (490,000 KRW), Jung-gu (630,000 KRW), and Gangseo-gu (460,000 KRW), where many office workers live, each saw the largest increase of 7%. Gangnam-gu (660,000 KRW) and Jongno-gu (520,000 KRW) also rose by 6% each. Areas with major universities such as Gwanak-gu (390,000 KRW), Gwangjin-gu (500,000 KRW), and Seodaemun-gu (470,000 KRW) also saw increases of over 4%.

The average monthly rent for two- and three-room apartments (exclusive area of 60㎡ or less) also rose by 2% from the previous month to 670,000 KRW. In particular, the monthly rents in popular school districts in Gangnam, such as Gangnam-gu (1,060,000 KRW), Seocho-gu (970,000 KRW), and Songpa-gu (830,000 KRW), increased by 6-7%. Popular school districts in the Gangseo and Gangbuk areas, such as Yangcheon-gu (610,000 KRW) and Nowon-gu (610,000 KRW), also rose by 5% each.

The monthly rent for one-room apartments near major universities in Seoul showed either stability or an upward trend in most areas except for Chung-Ang University (410,000 KRW). Konkuk University (480,000 KRW) and Yonsei University (520,000 KRW) each rose by 4%, and Seoul National University (390,000 KRW) also increased by about 3%.

Kang Gyu-ho, team leader of the Dabang Data Analysis Center at Station3, explained, "Recently, the revision of the college entrance system combined with the moving season during school vacations has caused a shortage of jeonse in popular school districts in Seoul." He added, "This trend has influenced the two- and three-room monthly rent market, showing a price increase centered in those areas." Kang predicted, "Monthly rents for one-room and two- and three-room apartments in Seoul will continue to rise steadily until March, when the new semester begins."