[One Month After the October 15 Measures] Newlyweds Struggle as Rental Listings Disappear in Outskirts of Seoul

79% Surge in Rental Listings in Seocho District
Decline in Eunpyeong and Seongbuk After New Regulations
Rental Shortage Intensifies Amid Rising Tenant Demand
Concerns Over Growing Housing Costs for Young People and Newlyweds

One month after the announcement of the October 15 real estate measures, polarization is emerging in the rental market. In the outskirts of Seoul, the number of available properties has decreased, leading to higher rental prices and increasing the housing cost burden for ordinary citizens. This trend appears to be largely due to a decline in listings as gap investment has been effectively blocked. In contrast, in areas at the center of soaring home prices, such as the Hangang Belt, the number of available properties has increased. Analysts attribute this to homeowners who secured a "smart single property" moving out, resulting in an accumulation of remaining homes as rental listings.

Yonhap News Agency

According to the real estate big data platform Asil on November 17, the number of available properties in Seongbuk-gu stood at 352 as of November 13. This represents a 24% decrease from the 461 listings recorded on October 19, just before all of Seoul was designated as a land transaction permission zone. Other districts also saw declines in listings: Eunpyeong-gu by 10% (from 500 to 450), Dongdaemun-gu by 10% (from 1,085 to 977), Jungnang-gu by 4% (from 284 to 274), and Yangcheon-gu by 3% (from 577 to 557).

Compared to a year earlier, on November 13, 2024, the number of listings in Seongbuk-gu has decreased by 57% from 827 to 352. Eunpyeong-gu saw a 43% drop (from 788 to 450), Gangbuk-gu 42% (from 418 to 209), and Gwanak-gu 52% (from 659 to 317).

For example, as of November 13, only 14 rental listings were available at Eunpyeong-gu Nokbeon Station E-Pyunhansesang Castle, a complex with 2,569 units. In the first half of this year, there were typically 20 to 30 listings on average. At Junggye Mujigae in Nowon-gu, which has 2,433 units, there are currently only 7 rental listings. Shinnae 6-danji Siyeong in Jungnang-gu saw its listings drop from the low teens before the regulations to just 3 afterward.

An employee at a real estate agency near Ssangmun-dong in Dobong-gu said, "As soon as a rental listing appears, it is snapped up immediately. With so few properties available, landlords can name their price. For units around 66 square meters, rental prices seem to have risen by about 20 million won."

This sharp decline in available rentals in the outskirts is attributed to the new regulations, which have effectively blocked gap investment by requiring actual residence. In addition, as the limit on mortgage loans has been reduced, those who had considered buying are now turning to rentals, further accelerating the shortage of rental properties. Song Seunghyun, CEO of Urban & Economy, explained, "In the outskirts, where residents generally have less cash on hand, demand for rentals is stronger than for purchases. As more genuine buyers are unable to purchase due to reduced loan limits and are instead waiting on the sidelines, any rental listing that appears is quickly taken up."

A real estate agency in Gangnam, Seoul, has flyers for sale and lease listings posted. Photo by Kang Jinhyung

In contrast, in major areas of Seoul where residents have greater cash reserves, demand for rentals has shifted toward purchases, resulting in an increase in available rental properties. As of November 13, the number of rental listings in Seocho-gu and Songpa-gu stood at 5,096 and 3,433, respectively, up 79% and 25% from October 19 (2,851 and 2,747). Gangnam-gu also saw an increase in rental listings from 5,799 to 6,324, a 9% rise. Other high-end apartment districts also showed increases: Seongdong-gu by 28% (from 850 to 1,089), Gangdong-gu by 17% (from 962 to 1,130), Gwangjin-gu by 10% (from 364 to 399), and Yongsan-gu by 9% (from 504 to 549).

Yoon Sumin, real estate specialist at NH Nonghyup Bank, said, "With expectations of rising home prices and concerns about further regulations, tenants in core areas with sufficient funds appear to have opted to purchase homes at this opportunity. As they exit the rental market, the number of available rentals has likely increased."

The rental shortage in the outskirts is expected to continue into next year. Kim Hyosun, chief real estate specialist at Nonghyup Bank, stated, "From next year onward, new construction will be concentrated in profitable areas such as the three Gangnam districts and Yongsan. As a result, the supply of new rental properties is likely to increase in these key locations due to the move-in effect."

Experts warn that if the rental shortage in the outskirts of Seoul worsens, the housing cost burden for tenants will increase. Ultimately, newlyweds and young people, who are more likely to live in these areas, will be most affected. Yoon added, "A decrease in rental listings can drive up monthly rents in the short term and push up sale prices in the long term. Ultimately, this will lead to continued increases in overall housing costs."