A 29-Square-Meter Room for 1 Million Won a Month... Monthly Rent Shock Hits Young People [Real Estate AtoZ]

Monthly rents above 1 million won for units under 30 sq. meters have increased sixfold in five years
In January-August of this year, 78.7% of officetel contracts were monthly rentals

One out of every eight monthly rental contracts for small officetels in Seoul was found to be at least 1 million won per month. The proportion of these high-priced monthly rents for units under 30 square meters increased sixfold over the past five years. In university districts, even 5-pyeong (about 16.5 square meters) officetels now cost as much as 1.2 million won a month, escalating the housing cost burden on young people.

Photos are unrelated to specific expressions in the article.

According to an analysis released on October 3, 2026, of the Ministry of Land, Infrastructure and Transport’s actual transaction price disclosure system, out of 40,342 newly signed or renewed monthly rental contracts for Seoul officetels under 30 square meters between January and August 2026, 5,062 contracts (12.5%) recorded monthly rents of 1 million won or more. In January–August 2021, only 2.1% of officetel rentals in the same size category were at least 1 million won per month. In about five years, the share of high-priced monthly leases of 1 million won or more has soared sixfold.

High-priced monthly leases have also spread to areas popular among young people. In Seodaemun, Jongno, Gwanak, and Geumcheon districts, there were no contracts exceeding 1 million won per month for units of this size in 2021. But between January and August 2026, the numbers soared to 248, 223, 201, and 187 contracts, respectively. In areas such as Sinchon, Daehak-ro, and Gwanak’s exam village, one-room units have entered the 1-million-won monthly rent range.

Monthly rental information for officetels is posted at a real estate agency in Seoul. Yonhap News Agency

The “Greenwood” officetel in Daehyun-dong, Seodaemun-gu (17 square meters) near Ewha Womans University was newly rented on August 26, 2026, at a 10 million won deposit and a monthly rent of 1.2 million won. This means paying 1.2 million won each month to rent a space about 5 pyeong in size. The “Luce” officetel in Hyehwa-dong, Jongno-gu (24.99 square meters), close to Sungkyunkwan University, also found a new tenant on July 8, 2026, at a 30 million won deposit and the same monthly rent of 1.2 million won.

The “Yangji High Start” officetel in Bongcheon-dong, Gwanak-gu, near Seoul National University (29.75 square meters), was newly leased on January 19, 2026, at a 50 million won deposit and a monthly rent of 1.4 million won. “Ilsung TrueL” near Seoul National University, an officetel of about 31.19 square meters, signed a new lease for a 20 million won deposit and a monthly rent of 1 million won on May 19, 2026. In Gasan-dong, Geumcheon-gu, where there is high demand from the Gasan Digital Complex, the “Gasan Central Prugio City” officetel (24.11 square meters) renewed its contract on May 6, 2026, at a 10 million won deposit and monthly rent of 1.09 million won.

The proportion of small officetels with monthly rents between 500,000 and 700,000 won dropped by half—from 47.0% in 2021 to 24.7% in 2026. The share of low-priced units, with monthly rents of 500,000 won or less, remained fairly steady at 32.0%, similar to 33.3% in 2021.

Mid- and large-sized officetels, often seen as alternatives to apartments, have also experienced a sharp increase in high-priced monthly leases. For medium-sized officetels (over 60 square meters up to 85 square meters), the proportion of contracts with monthly rents of at least 1.5 million won rose from 18.3% (66 contracts) in 2021 to 49.6% (486 contracts) in 2026, a 2.7-fold increase. Ultra-high monthly rents of 2 million won or more also jumped from 9.1% (33 contracts) to 29.6% (290 contracts) over the same period. For large officetels over 85 square meters, a size suitable for families, contracts with monthly rents over 2 million won surged from 18.4% (34 contracts) to 39.5% (124 contracts).

Jeonse (lump-sum deposit leases) are rapidly disappearing from the officetel rental market. In Seoul, the proportion of monthly rent contracts among all officetel transactions (jeonse plus monthly rent) increased from 50.1% in January–August 2021 to 78.7% during the same period in 2026, up by 28.6 percentage points. Meanwhile, the volume of jeonse transactions fell by 36.3% from 21,695 contracts in 2021 to 13,817 contracts in 2026. This appears to reflect landlords’ preference for monthly rents and the shortage of apartment jeonse units.

With apartment jeonse prices soaring and even non-apartment leases switching to monthly rent, the housing cost burden for young people has intensified. For officetels under 30 square meters, a deposit of 10–20 million won is common, but with monthly rents at 1 million won, annual rental costs reach 12 million won.

Jo Jeongheun, Chair of the Land and Housing Committee at the Citizens' Coalition for Economic Justice, explained, “As the conversion from jeonse to monthly rent accelerates in the officetel market, and as both jeonse loans and guarantee limits are reduced, tenants are being pushed toward monthly rent as a reaction. The mismatch between landlords preferring monthly rent income and tenants wanting jeonse has led to decreased supply of jeonse, driving up monthly rental prices.”

There is concern that if this sharp rise in monthly rents continues unchecked, the market will eventually favor corporate landlords with access to large-scale capital. This is because corporate rentals can only be sustained if high monthly rent yields are guaranteed. Jo pointed out, “The current surge in monthly rents creates an environment in which corporate landlords, seeking high returns, can operate. The government, by focusing policies on promoting corporate rentals rather than ensuring stable housing for ordinary people, is worsening the housing cost pain for young people.”

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