Seoul Apartment Monthly Rent Share Surpasses 54%... Shift Toward 'Monthly Rent-Centered' Market Accelerates

Jeonse Prices Up 1.04% in May Compared to Previous Month

Monthly Rent Share Hits 54.1% in June

Increased Transactions for Apartments Under 1.5 Billion Won and Small Units

In the Seoul apartment rental market, the share of monthly rental (wolse) transactions has significantly surpassed that of jeonse (lump-sum deposit leases), making the shift toward a “monthly rent-centered” market structure even more pronounced.

There is a property listing posted at a real estate agency in Gangnam-gu, Seoul. Photo by Yonhap News

According to data analyzed by the Seoul Metropolitan Government based on statistics from the Korea Real Estate Board on July 22, the number of Seoul apartment jeonse transactions recorded last month was 7,477 as of the 15th. This marks a 12.5% decrease compared to one month earlier.

In contrast, the number of monthly rental transactions reached 8,819, a 3.3% increase from the previous month. As a result, monthly rental transactions outnumbered jeonse contracts by more than 1,300 last month, underscoring the intensified shift toward a market structure focused on monthly rent.

The proportion of monthly rental transactions in apartment lease contracts last month stood at 54.1%. This marked a break from the trend since December last year, during which jeonse and wolse had maintained similar proportions; last month, the share of jeonse transactions (45.9%) was significantly lower.

Among jeonse renewals, the proportion of contract renewals rose to 53.8% last month, increasing both from the previous month and the same period last year. Meanwhile, the proportion of contract renewal right (a tenant’s legal right to request a contract renewal) usage reached 55%, up from 51.3% the previous month but down from 57.7% a year earlier.

Seoul Apartment Jeonse Actual Transaction Prices Rose 1.04% Month-on-Month in May ... Northeast Region Sees 2% Growth

The actual transaction price for Seoul apartment jeonse in May rose by 1.04% compared to the previous month. By region, the northeastern area saw the largest increase, rising 2.25% from the previous month.

The jeonse actual transaction price index was calculated based on contracts concluded in May, for which the contract date was certified and a rental report was filed within 30 days.

By apartment size, all but the large segment posted a month-on-month increase. Among these, small units (more than 40㎡ and up to 60㎡) posted the highest growth rate at 1.43%.

May Apartment Sales Actual Prices Up 1.33% MoM ... In June, Share of Transactions for Apartments Priced Under KRW 1.5 Billion Increased

In the apartment sales market, tighter loan regulations led to increased trading of medium- and lower-priced apartments, with a focus on units priced under KRW 1.5 billion.

The actual transaction price for Seoul apartment sales in May increased by 1.33% compared to the previous month, and by 13.47% compared to the same period last year.

The actual transaction price index is calculated by the Korea Real Estate Board, based on all transaction data for sales contracts signed from May 1 to 31 and reported within 30 days in accordance with the relevant real estate transaction laws.

All apartment size categories saw price increases last month, with small units (more than 40㎡ and up to 60㎡) showing the strongest growth at 1.79%.

By transaction value, the share of deals for apartments priced at or below KRW 1.5 billion in May was 77.9%, an increase of 5 percentage points compared to the prior month.

Before the end of the temporary exemption from the heavy capital gains tax for multiple-homeowners, transactions of high-priced homes increased, causing the share of transactions for apartments under KRW 1.5 billion to decrease during April and May compared to the beginning of the year. However, last month, as the concentration of high-priced housing transactions eased and the impact of lending regulations boosted real demand for mid- and low-priced units, the proportion of transactions below KRW 1.5 billion rose again.

By district, Nowon-gu, Gangseo-gu, Seongbuk-gu, Guro-gu, Dobong-gu, and Eunpyeong-gu posted the highest transaction volumes. In these areas, the share of transactions for apartments valued at or below KRW 1.5 billion well exceeded 90%.

This content was produced with the assistance of AI translation services.