Monthly Rent Transactions Account for 51.1% in January and February
Most Transactions in Songpa, Gangnam, and Seocho Districts
8 Out of 10 Contracts Are for Monthly Rent Under 500,000 KRW
This year, the monthly rent transactions have outnumbered the jeonse (long-term lease) transactions in the Seoul apartment rental market. In particular, the number of monthly rent contracts signed in the Gangnam 3 districts accounts for 23% of the total in Seoul. High-priced monthly rent contracts exceeding 3 million KRW continue steadily.
On the 10th, Woori Bank's WM Sales Strategy Department analyzed the Seoul apartment jeonse and monthly rent transaction data reported to the Ministry of Land, Infrastructure and Transport's Real Transaction Price Disclosure System from January 1 to February 28 this year. The result showed that monthly rent transactions amounted to 16,570 cases (51.1%), which is 705 cases more than jeonse transactions (15,865 cases, 48.9%).
Among the 25 districts in Seoul, the areas with the most monthly rent transactions were △Songpa-gu (1,567 cases) △Gangnam-gu (1,234 cases) △Seocho-gu (1,098 cases), in that order. The monthly rent contracts in these three districts accounted for 23.5%. The demand for monthly rent in high-priced apartments in the Gangnam area exists, and with additional monthly rent demand for children's education purposes for the new school semester, the monthly rent trend is rapidly progressing in the Gangnam area.
In particular, in the Gangnam 3 districts, high-priced monthly rent contracts exceeding 3 million KRW are being made. An 85㎡ unit of The H Firstier I-Park in Gangnam-gu was contracted on January 1 with a deposit of 10 million KRW and a monthly rent of 6 million KRW. A 78.5㎡ unit of Acro Riverview Sinbanpo in Seocho-gu was contracted with a deposit of 100 million KRW and a monthly rent of 4 million KRW. In Songpa-gu, on the 27th of last month, a 144.77㎡ unit of Parkrio was contracted at the highest monthly rent with a deposit of 10 million KRW and a monthly rent of 5.3 million KRW.
Unlike the Gangnam 3 districts, areas such as Dobong-gu (145 cases), Gangbuk-gu (156 cases), and Jongno-gu (189 cases) have relatively fewer monthly rent transactions compared to other districts in Seoul. This is interpreted as due to the preference for jeonse in these areas and the landlords' burden of returning deposits.
The majority of monthly rent transactions by price range were under 500,000 KRW, accounting for 13,245 cases (79.9%). This is due to many deposit-included monthly rent transactions where the housing area type was small or the deposit ratio was increased to lower the monthly rent. Next were △over 500,000 KRW to 1 million KRW with 2,456 cases (14.8%) △over 1 million KRW to 2 million KRW with 679 cases (4.1%) △over 2 million KRW to 3 million KRW with 134 cases (0.8%) △over 3 million KRW with 56 cases (0.3%).
There is also a forecast that the monthly rent trend for Seoul apartments will accelerate further. Ham Young-jin, head of Woori Bank's Real Estate Research Lab, explained, "Considering the base interest rate cut, the upcoming spring moving season, the decrease in jeonse listings, and the trend of strengthening jeonse loan regulations such as lowering the jeonse guarantee ratio, the monthly rent trend and monthly rent increase for Seoul apartments are inevitable for the time being."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
