Seoul's apartment rental market is experiencing a significant shift, with monthly rent transactions now surpassing traditional "jeonse" (lump-sum deposit) deals. According to a recent analysis by Woori Bank WM Sales Strategy Department, monthly rent contracts accounted for 51.1% of all apartment rental agreements in Seoul between January 1 and February 28, 2025.
The data reveals a total of 16,570 monthly rent transactions compared to 15,865 jeonse deals during the same period. This trend is particularly evident in the affluent Gangnam area, where the shift towards monthly rent is accelerating. The districts of Songpa-gu (1,567 transactions), Gangnam-gu (1,234 transactions), and Seocho-gu (1,098 transactions) recorded the highest number of monthly rent deals.
Notably, the "Gangnam 3" districts (Gangnam, Seocho, and Songpa) have seen numerous high-priced monthly rent contracts, with some exceeding millions of Korean won. For example, in Gangnam-gu, an 85㎡ apartment in 'DH Firstier Ipark' was leased for a deposit of 100 million won and a monthly rent of 6 million won. In Seocho-gu, a 78.5㎡ apartment in 'Acro Riverview Sinbanpo' was contracted for a deposit of 1 billion won and a monthly rent of 4 million won.
However, the majority of monthly rent transactions (79.9%) are for rents of 500,000 won or less, suggesting that smaller apartments or "jeonse-converted" monthly rent deals with higher deposits are prevalent.
Experts predict that the trend of increasing monthly rent transactions will continue. Ham Young-jin, head of Woori Bank's Real Estate Research Lab, stated, "With the recent interest rate cuts and the upcoming spring moving season, jeonse listings are decreasing. Considering the financial sector's trend of tightening jeonse loans, including the reduction of jeonse guarantee ratios by the Housing Finance Corporation (HF) and other guarantee providers, monthly rent transactions are expected to rise further."
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