[Report] 'Non-face-to-face Classes' Direct Hit, University Area One-room Apartments 'Empty'... "Half Are Vacant"

Students Leaving One-Room Apartment Area Near Hanyang University, 'Desolate'
Reasons for Renting Disappear Due to Remote Classes
Real Estate Agent: "Almost No Students Inquiring About One-Room Apartments"

Similar Situation in One-Room Apartment Areas Near Yonsei University and Other Universities

Demand Decreases, Monthly Rent Falls
"One-Room Demand Will Increase Once In-Person Classes Fully Resume"

[Asia Economy Reporter Lee Jung-yoon, Intern Reporter Kim Sung-won] The studio apartment area around Sageun-dong, Seongdong-gu, Seoul. Hanyang University is located about a 10-minute walk away, making it a preferred residential area for Hanyang University students. However, when visiting the area on the afternoon of the 30th, it was difficult to spot students. Instead, notices reading "Studio for Rent" and "Vacancy Available" were posted all over the buildings.

The prolonged COVID-19 pandemic has dealt a direct blow to university-area studio apartments. As most universities continue with online classes, the demand for student housing has decreased, causing a significant increase in vacant studios. Although social distancing measures have been eased to level 1 and universities are now conducting a mix of online and in-person classes, most classes are still held online. Additionally, the possibility of switching back to online lectures if COVID-19 cases surge again discourages students from renting studios.

"Don't even mention it. Studio apartment transactions have dropped roughly 30-40% compared to last year. Last year, listings with a 10 million KRW deposit and 500,000 KRW monthly rent are now going for 10 million KRW deposit with 470,000-480,000 KRW rent, or 5 million KRW deposit with 500,000 KRW rent. If rents don't fall any further, that would be fortunate,"

said a representative from real estate agency A in Sageun-dong. Since the start of the COVID-19 outbreak and the full-scale shift to online classes in the first semester, followed by continued pandemic conditions in the second semester, finding tenants for studio apartments has become more difficult than finding a needle in a haystack. He explained, "Out of every 20 studios, 3 to 5 are vacant."

At least near Hanyang University, being a "live-work proximity" area, demand from office workers supports the market. However, the situation is worse in studio apartment areas centered around campuses such as Yonsei University, Sungkyunkwan University, Korea University, and Hankuk University of Foreign Studies. Not only have studio rental transactions stopped, but inquiries have completely dried up. A real estate agent specializing in studio rentals in Daehangno said, "There were no vacancies near the main gate of Sungkyunkwan University's Humanities and Social Sciences Campus, and even waiting lists were hard to get into," but added, "Currently, only occasionally students who have completed their military service contact us; there are no inquiry calls at all."

As studio rentals fail to materialize, landlords' complaints are growing louder. A representative from a real estate agency near Korea University said, "The building owners in this area are not the landlords you might imagine," adding, "They rely on monthly rent for living expenses, so they are struggling even more." A real estate agent in the studio apartment area near Hankuk University of Foreign Studies also said, "Studios around the school are really a nightmare," and mentioned that some owners have even put their studio buildings up for sale. A studio landlord near Yonsei University in Changcheon-dong said, "In the past, even if there were vacancies, it was only one or two units, but this year almost half are empty," and added, "Upon hearing that online classes will continue in the second semester, I decided to remodel and started construction."

With fewer students looking for studios, monthly rents have also fallen. According to the real estate platform Dabang Data Analysis Center, last month the monthly rent for studios around Yonsei University (exclusive area under 33㎡, with a uniform deposit of 10 million KRW) dropped 4% from the previous month to 460,000 KRW, while Seoul National University, Konkuk University, and Hongik University saw decreases of 2-3%. The average monthly rent for studios in Seoul also fell by 20,000 KRW from the previous month to 470,000 KRW, marking the lowest price since data collection began in 2018.

Professor Seo Won-seok of the Department of Urban Planning and Real Estate at Chung-Ang University explained, "Studio apartment areas mainly occupied by university students have inevitably been hit hard by online lectures, and especially with the resurgence of COVID-19 centered in the metropolitan area, the decrease in demand has become more pronounced," adding, "Only when in-person lectures become the primary mode of instruction will studio apartment demand increase again."