Monthly Studio Rents Down 4.5% Year-on-Year
Average Management Fees Up 2,000 Won from Last Year
While monthly rents for studio apartments near major university districts in Seoul have decreased compared to the previous year, management fees have shown a slight increase.
According to an analysis released on August 17 by real estate information platform Dabang, the average monthly rent for studio apartments (with an exclusive area of 33 square meters or less) near 10 major universities in Seoul, based on a deposit of 10 million won, was 581,000 won. This figure represents a decrease of 27,000 won (4.5%) compared to the same month last year, when the average was 608,000 won.
By region, the area near Seoul National University saw the largest drop, with average monthly rent falling from 500,000 won last year to 423,000 won this year, a decrease of 15.4%. This was followed by the area near Chung-Ang University, which dropped from 550,000 won to 477,000 won (down 13.3%); the area near Hankuk University of Foreign Studies, from 650,000 won to 582,000 won (down 10.5%); the area near Sungkyunkwan University, from 610,000 won to 576,000 won (down 5.6%); the area near Ewha Womans University, from 740,000 won to 709,000 won (down 4.2%); the area near Sogang University, from 640,000 won to 617,000 won (down 3.6%); and the area near Yonsei University, from 630,000 won to 614,000 won (down 2.5%).
In contrast, monthly rent for studio apartments near Hanyang University increased from 550,000 won last year to 575,000 won this year, up 4.5%. The area near Korea University rose from 580,000 won to 599,000 won, up 3.3%, while the area near Kyung Hee University saw a slight increase from 630,000 won to 634,000 won, up 0.6%.
Although monthly rents have declined, the average management fee rose from 73,000 won last year to 75,000 won this year, an increase of 3.3%. The area with the highest increase in management fees was near Korea University, where the fee jumped from 70,000 won last year to 83,000 won this year, up 18.6%. This was followed by the area near Hanyang University, which rose from 60,000 won to 70,000 won (up 16.7%); the area near Ewha Womans University, from 90,000 won to 101,000 won (up 12.2%); and the area near Sogang University, from 60,000 won to 64,000 won (up 6.7%).
The only area where the average management fee declined was near Sungkyunkwan University, where it dropped from 60,000 won last year to 55,000 won this year, a decrease of 8.3%. The area near Chung-Ang University fell from 80,000 won to 76,000 won (down 5%); the area near Hankuk University of Foreign Studies, from 80,000 won to 77,000 won (down 3.8%); and the area near Seoul National University, from 80,000 won to 78,000 won (down 2.5%).
Among the major university districts, the area near Ewha Womans University recorded the highest average monthly rent and management fee. Last month, the average monthly rent for studio apartments in this area was 709,000 won, and the management fee was 101,000 won. Compared to the average for major universities in Seoul, the monthly rent was 22.1% higher and the management fee was 33.95% higher.
A representative from Dabang stated, "For young people and single-person households, who make up the majority of residents in university districts, management fees are a fixed expense just like rent. Therefore, even though monthly rents have decreased, the actual housing burden is likely to remain significant."
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