Number of Apartment Rentals with Monthly Rent Over 20 Million Won on the Rise
26 Million Won per Month at Acro Seoul Forest in Seongdong-gu
Hannam The Hill in Yongsan-gu Rented for 21 Million Won per Month
The number of ultra-high-end apartment rental transactions with monthly rent exceeding 20 million won has been on the rise this year. These transactions are taking place in luxury residences in the three Gangnam districts, as well as in parts of Seongdong-gu and Yongsan-gu. It has been identified that celebrities, company executives, and professionals are driving demand for these ultra-high-end rental deals.
According to the Ministry of Land, Infrastructure and Transport's actual transaction price disclosure system as of May 9, there were six recorded apartment rental transactions with monthly rent exceeding 20 million won last month. The number of transactions with monthly rent above 20 million won has been increasing sharply this year. After nine such transactions in November last year, there were none in January this year, followed by one in February and three in March.
Even in Seoul, these transactions have occurred in the most luxurious residences. The highest monthly rent was recorded at Acro Seoul Forest, Seongsu-dong, Seongdong-gu, Seoul, for a unit with an exclusive area of 198 square meters. Two households signed leases with deposits of 1 billion won and monthly rent of 26 million won, and a deposit of 4 billion won with monthly rent of 20 million won, respectively. A smaller unit with an exclusive area of 159 square meters was leased with a deposit of 1 billion won and monthly rent of 24 million won.
At Hannam The Hill, a representative luxury residence in Yongsan-gu, units with exclusive areas of 233 square meters and 208 square meters were leased with deposits of 500 million won and monthly rents of 20 million won and 21 million won, respectively. In addition, a unit with an exclusive area of 181 square meters at Raemian One Pentas in Seocho-gu was leased with a deposit of 400 million won and monthly rent of 24 million won.
Ultra-high-end apartment rentals are mainly sought after by celebrities, corporate executives, and professionals. Acro Seoul Forest, which recorded the highest monthly rent, is known as a residence for many famous celebrities. Actress Jun Ji-hyun purchased a unit jointly with her husband, and it is reported that actors Lee Je-hoon, Joo Sang-wook and Cha Ye-ryun, as well as Taemin of the group SHINee, are among the many celebrities who have moved in.
It is expected that ultra-high-end rental transactions will continue to increase. There are projections that the luxury apartment rental market will become even more active as the number of high-income earners grows. Last year, there were approximately 3,300 ultra-high-income health insurance subscribers who received monthly salaries of at least 119 million won. Most of these individuals are known to be CEOs or executives of large corporations or small and medium-sized enterprises. This accounts for about 0.00016% of the total 19,883,677 workplace subscribers, excluding dependents, as of last year.
The polarization between the general rental market and the ultra-high-end rental market is also expected to intensify. Kim Hyosun, Chief Real Estate Specialist at NH Nonghyup Bank, explained, "People who do not own homes for reasons such as taxes, or those who can treat rent as a business expense, are creating this 'market for the few.' As the high-income class continues to grow, more people are choosing to rent rather than own, and the base of the ultra-high-end rental market is expected to expand."
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