Half of Apartment Lease Contracts in Seoul Renewed in First Half of 2026

This year, half of the apartment lease contracts in Seoul during the first half of 2026 were renewals. While new contracts saw a significant decline, the number of renewal contracts decreased only slightly, pushing the renewal rate above 50% for the first time. In contrast, the renewal rate for multi-family and small apartment units remained similar to last year, highlighting a pronounced trend of tenants opting to stay in their apartments.

According to the Ministry of Land, Infrastructure and Transport, there were 57,354 apartment lease contracts in Seoul in the first half of this year. Of these, 28,770 were renewal contracts, accounting for 50.2% of the total. New contracts totaled 26,764 (46.7%), while contracts without specified categories numbered 1,820 (3.2%).

This marks a 9.8 percentage point increase from the 40.4% renewal rate recorded in the same period last year. The significant drop in new contracts, coupled with sustained demand for renewals, has resulted in existing tenants renewing their leases at a rate exceeding half.

The rapid increase in lease prices across Seoul has raised the financial burden for those seeking new apartments, leading many existing tenants to choose renewal over relocation.

According to statistics from the Korea Real Estate Agency, the average lease price for apartments in Seoul rose by 0.35% in the fourth week of June, marking the highest increase in nearly 12 years and 8 months. Notably, districts such as Seongdong and Seongbuk saw increases of 0.55%, while Guro and Dobong also experienced significant price hikes.

Additionally, a decrease in the number of available apartments and a shortage of lease listings have contributed to a shrinking supply of rental properties in the market.

The decline in new lease contracts has been much steeper than that of renewal contracts. New apartment lease contracts in Seoul fell from 40,810 in the first half of last year to 26,764 this year, a decrease of 34.4%. In contrast, renewal contracts dropped from 32,251 to 28,770, a decline of only 10.8%. This rapid reduction in available contracts for new tenants has slowed the overall turnover in the rental market.

Conversely, the multi-family and small apartment sector has shown a different trend, with the proportion of renewal contracts remaining virtually unchanged at 36.4% to 36.3% this year. The preference for the relatively safer apartment sector has highlighted the slowdown in the turnover of the apartment rental market.

Industry experts warn that this trend could exacerbate the housing burden for new tenants. As more existing tenants renew their leases, the number of available rental properties decreases, leaving fewer options for those needing to find new homes.

Shim Hyung-seok, a senior expert at the law firm Joyul and a professor at IAU in the U.S., stated, "With lease prices rising significantly and a lack of available listings, the options for tenants have drastically diminished. The financial burden is considerable, and as it becomes increasingly difficult to find apartments that meet their criteria, more tenants are opting to renew rather than move. This trend of rising renewal rates, particularly for apartments, is likely to continue."