I Also Rent Monthly, Worth 45 Million Won... Even Super Rich Prefer "Monthly Rent Over Jeonse"

Gangnam-gu and Seongdong-gu Monthly Rent Exceeding 10 Million Won Repeatedly
Acquisition Taxes Alone Amount to Hundreds of Millions "Ownership Itself Is a Burden" Increasing

As high interest rates persist, a phenomenon is emerging where 'super-rich' individuals such as high-income self-employed people and celebrities prefer monthly rent over jeonse (lump-sum deposit lease). In particular, in areas like Gangnam-gu and Seongdong-gu in Seoul, high-priced monthly rent contracts exceeding 10 million KRW per month are occurring one after another.

According to the Ministry of Land, Infrastructure and Transport's actual transaction price system on the 24th, an apartment in Seongsu-dong, Seongdong-gu, Seoul, called 'Acro Seoul Forest' (photo) with an exclusive area of 264㎡ signed a lease contract in July with a deposit of 2 billion KRW and a monthly rent of 45 million KRW. This price is 66% higher than the monthly rent of the same house two years ago (deposit 2 billion KRW, monthly rent 27 million KRW). This complex near Seoul Forest also made headlines last September when actress Jeon Ji-hyun purchased a penthouse (exclusive 264㎡) for 13 billion KRW.

According to the Ministry of Land, Infrastructure and Transport's actual transaction price system on the 24th, a lease contract was signed in July for the 'Acro Seoul Forest' in Seongsu-dong, Seongdong-gu, Seoul, with a deposit of 2 billion KRW and a monthly rent of 45 million KRW for an exclusive area of 264㎡.
[Photo by Asia Economy]

This year, there have been 38 apartments (excluding multi-family houses and villas) where high-priced monthly rent contracts exceeding 10 million KRW per month were made. Among them, Gangnam-gu accounted for 40%, with 15 locations. The 'Sangji Kyleum' in Cheongdam-dong, Gangnam-gu, with an exclusive area of 244㎡, sought tenants in March with a deposit of 300 million KRW and a monthly rent of 25 million KRW.

This is 6 million KRW (30%) higher than three years ago (deposit 300 million KRW, monthly rent 19 million KRW). 'I-Park Samsung' in Samseong-dong, a symbol of the highest-end residential-commercial complex apartments, is also a complex where ultra-high monthly rents exceeding 10 million KRW are frequent. An apartment with an exclusive area of 195㎡ in this complex found a tenant who pays a deposit of 500 million KRW and a monthly rent of 20 million KRW.

Following Gangnam, Yongsan and Seocho also become high-priced monthly rent areas

Following Gangnam-gu, Yongsan-gu (12 locations) and Seocho-gu (6 locations) were also listed as high monthly rent areas. In Hannam-dong, Yongsan-gu, a 233㎡ unit in 'Hannam The Hill' was leased last month with a deposit of 500 million KRW and a monthly rent of 24 million KRW.
[Photo by Yonhap News]

Following Gangnam-gu, Yongsan-gu (12 locations) and Seocho-gu (6 locations) have also been named as high-priced monthly rent areas. In Hannam-dong, Yongsan-gu, 'Hannam The Hill' with an exclusive area of 233㎡ signed a lease contract last month with a deposit of 500 million KRW and a monthly rent of 24 million KRW. The monthly rent for this housing type is formed around 24 to 25 million KRW, and the deposit has risen from about 200 million KRW earlier this year to 500 million KRW now.

In Seocho-gu, high-priced monthly rents are frequent in newly built apartments in Banpo-dong such as Acro River Park, Banpo Xi, and Raemian Prestige. An apartment with an exclusive area of 178㎡ in Acro River Park sought tenants with a deposit of 500 million KRW and a monthly rent of 15 million KRW. A contract was also made for an exclusive 222㎡ apartment in Raemian Prestige with a deposit of 200 million KRW and a monthly rent of 12.5 million KRW.

As high interest rates continue, there are also forecasts that demand in the ultra-high monthly rent market will be steadily maintained. A representative of a brokerage office in Seongsu-dong explained, "High-priced home purchases require taxes such as acquisition tax, capital gains tax, and property tax amounting to hundreds of millions of KRW at the time of purchase," adding, "Even those with sufficient assets tend to find monthly rent burdensome and prefer monthly rent."