"Monthly Rent of 10 Million Won" High-End Apartment Leases Surge... Expanding from Gangnam to Yongsan and Seongdong [Real Estate AtoZ]

253 High-End Apartment Rentals in Seoul Exceeded 10 Million Won Last Year
Transaction Volume Surged 42 Times Compared to 6 Cases a Decade Ago
Rising Apartment Prices and Increased Supply in Seoul
Growing Number of High-Net-Worth Individuals Fuels Demand

Aerial view of Nine One Hannam in Yongsan-gu, Seoul. Photo by Yonhap News Agency

There has been a significant increase in high-end apartment rental contracts exceeding 10 million won per month in Seoul. The number of reported transactions last year grew more than fortyfold compared to ten years ago. While such transactions were previously limited mainly to the three Gangnam districts, the areas have recently expanded to include Yongsan-gu and Seongdong-gu. This trend is interpreted as a result of both rising asset prices and simultaneous increases in the supply and demand for luxury apartments, which are driving the growth of the ultra-high-end rental market.

According to data from the Ministry of Land, Infrastructure and Transport’s real transaction price disclosure system, there were a total of 253 apartment rental transactions in Seoul last year with monthly rents exceeding 10 million won. This represents an increase of about 23% compared to 205 cases in 2024. In 2015, ten years ago, there were only six such transactions. This marks a more than forty-twofold increase over the past decade.

The number of ultra-high-end apartment rentals, which had been steadily increasing, began to rise rapidly in the 2020s. After recording 23 cases in 2020, the number rose to 80 the following year. In 2024, when high interest rates were maintained, the number of cases increased by only three compared to the previous year, but last year, when housing prices surged significantly, the number of contracts exceeded 250 for the first time. According to the Korea Real Estate Board, as of November last year, the average monthly rent for apartments in Seoul was 1,476,000 won, a 62% increase compared to ten years ago. The rise in high-end rentals appears to have contributed to this trend.

As apartment prices in Seoul have continued to rise, high-value transactions have naturally increased. According to Real Estate R114, as of December 26 last year, the average sales price per 3.3 square meters of apartments in Seoul was 48.31 million won, about 2.7 times higher than ten years ago. In Gangnam-gu and Seocho-gu, where many luxury apartments are concentrated, prices rose by about 2.9 times. For example, a 244-square-meter unit in Banpo Xi, Seocho-gu, was leased in December 2015 with a deposit of 300 million won and a monthly rent of 6.5 million won, but in September last year, a contract was reported for the same deposit and a monthly rent of 15 million won.

The increased supply of high-priced apartments has also played a role. Until 2015, all apartment rentals exceeding 10 million won per month were reported in the three Gangnam districts, with most transactions occurring in Cheongdam-dong, Gangnam-gu, and Banpo-dong, Seocho-gu. The situation changed as high-priced apartments were built in areas like Yongsan-gu and Seongdong-gu. Nine One Hannam in Hannam-dong, Yongsan-gu, was completed in 2019, and Brighton Yeouido in Yeouido-dong, Yeongdeungpo-gu, was completed in 2023. Trimage in Seongsu-dong, Seongdong-gu, where soccer player Son Heungmin once lived, was built in 2017.

Last year, Yongsan-gu recorded the highest number of monthly rental transactions exceeding 10 million won, with 83 cases. This was followed by Seocho-gu (64 cases), Seongdong-gu (47 cases), Gangnam-gu (40 cases), and Yeongdeungpo-gu (11 cases). The most expensive rental reported last year was a 231-square-meter unit at Eterno Cheongdam in Gangnam-gu, which was leased with a deposit of 4 billion won and a monthly rent of 40 million won.

The steady increase in the number of high-net-worth individuals with strong purchasing power is also supporting demand. According to the '2025 Korea Wealth Report' by KB Financial Group Management Research Institute, the number of people with financial assets of 1 billion won or more increased from 182,000 in 2015 to 476,000 last year, a 2.6-fold increase. The main demand for high-priced apartment rentals comes from asset holders in securities and virtual assets, senior company executives, foreigners, and celebrities. Those who can afford monthly rents in the tens of millions of won, typically with access to significant cash resources, are the main tenants.

Kwon Youngsun, head of the Real Estate Investment Advisory Center at Shinhan Bank, said, "The fundamental reason for the increase in high-end rental transactions is the sharp rise in housing prices and the significant increase in luxury apartments over the past four to five years compared to ten years ago." He added, "Rather than paying a lump sum to purchase or lease an apartment, some prefer to pay monthly and manage their funds through investments and other means." He further stated, "Since there are currently no factors causing a decline in the prices of luxury homes along the Han River Belt, high-priced rental transactions are expected to continue increasing in the future."