Seoul One-Room Monthly Rent Continues to Rise... "Housing Cost Burden Increases"

The average monthly rent in March is 510,000 won, up 6.3% from the previous month

[Asia Economy Reporter Onyu Lim] Monthly rents for one-room and two- to three-room apartments in Seoul continue to rise, increasing the housing cost burden for tenants. However, due to the prolonged non-face-to-face classes, monthly rents for one-room apartments near universities are either declining or remaining stable.

According to Dabang on the 3rd, the average monthly rent for one-room apartments in Seoul last month was 510,000 KRW, up 6.3% compared to the previous month.

Among the 25 districts in Seoul, monthly rents for one-room apartments increased in 15 districts, remained stable in 7, and decreased in 3. The area with the largest rent increase was Seocho-gu (680,000 KRW), where many office workers are concentrated, rising 7.9% from the previous month.

In addition, monthly rents in Gangnam-gu (710,000 KRW), Mapo-gu (550,000 KRW), and Jongno-gu (500,000 KRW) rose significantly by around 6% each. Notably, the average monthly rent in Gangnam-gu surpassed 700,000 KRW for the first time in the past year, showing a 9.2% increase compared to the same period last year (650,000 KRW).

The average monthly rent for two- to three-room apartments in Seoul was 910,000 KRW, up 2.2% from the previous month. Among the 25 districts, monthly rents for two- to three-room apartments increased in 14 districts, remained stable in 9, and decreased in 2. The largest increase was seen in Dongdaemun-gu (760,000 KRW), which rose 7% from the previous month. Additionally, Yeongdeungpo-gu (700,000 KRW), Songpa-gu (970,000 KRW), and Jongno-gu (970,000 KRW) saw increases of 4-6%.

In university areas of Seoul, monthly rents declined or remained stable in 10 districts due to decreased demand from prolonged non-face-to-face classes. Seoul National University area (340,000 KRW) saw the largest decrease of 6%, while Konkuk University (410,000 KRW) and Kyung Hee University (420,000 KRW) also experienced significant declines of about 5% each.

A representative from the Station3 Dabang Data Analysis Center said, "With the shortage of jeonse (long-term deposit lease) and the acceleration of the conversion from jeonse to monthly rent, monthly rents have risen not only in major areas but also in most districts of Seoul." He added, "On the other hand, monthly rents in university one-room apartment areas are expected to continue declining for the time being due to the impact of non-face-to-face classes."