The rental market for apartments in Seoul is showing a clear trend of decreasing jeonse (long-term lease) and increasing monthly rent. Over the past seven years, the number of jeonse units has decreased by more than 30,000, while the number of monthly rent units, including half-jeonse, has increased by over 50,000.
According to an analysis of microdata from the 2024 housing survey by the National Statistical Portal (KOSIS) released on August 17, jeonse accounted for 371,972 units, or 61.9% of the total rental units in Seoul. Monthly rent, including those with and without deposits, comprised 229,029 units, or 38.1%.
Comparing this to the data from 2017, when the current sampling system began, the changes in the rental market are significant. At that time, there were 406,855 jeonse units, making up 69.7% of the total, while monthly rent units were 177,269, or 30.3%.
Over the seven years, the proportion of jeonse has decreased by 7.8 percentage points, while the share of monthly rent has increased by the same margin. In terms of unit numbers, jeonse has decreased by 34,883 units, while monthly rent has increased by 51,760 units.
Notably, the total number of rental units in Seoul increased from 584,124 to 601,001, a rise of about 17,000 units during the same period. This indicates that the increase in monthly rent is more pronounced than a significant rise in rental demand. It suggests a rapid expansion of the monthly rent segment within the rental market.
The share of monthly rent dropped to 28.8% (172,876 units) during the COVID-19 pandemic in 2020 but surged to 38.4% in 2021. It slightly decreased to 37.2% in 2022 and 35.6% in 2023, but rose again to 38.1% in 2024.
There are forecasts that the trend toward monthly rent in Seoul's rental market may accelerate further. Recent reforms in real estate taxation have emphasized actual residence, raising concerns about a potential decrease in jeonse availability.
If the tax burden on multiple homeowners and non-resident single homeowners increases, it is anticipated that landlords may either sell their properties or convert jeonse into monthly rent. Should the reduction in jeonse supply materialize, tenants may face increased monthly rent burdens.
Meanwhile, the government announced on August 13 plans to supply over 230,000 new housing units, including new sites in the metropolitan area, as part of a strategy to stabilize the rental and sales markets. A new public-private rental model aimed at ensuring housing stability for young people and newlyweds, to be operated for over 20 years, is also in the works.
According to an analysis of microdata from the 2024 housing survey by the National Statistical Portal (KOSIS) released on August 17, jeonse accounted for 371,972 units, or 61.9% of the total rental units in Seoul. Monthly rent, including those with and without deposits, comprised 229,029 units, or 38.1%.
Comparing this to the data from 2017, when the current sampling system began, the changes in the rental market are significant. At that time, there were 406,855 jeonse units, making up 69.7% of the total, while monthly rent units were 177,269, or 30.3%.
Over the seven years, the proportion of jeonse has decreased by 7.8 percentage points, while the share of monthly rent has increased by the same margin. In terms of unit numbers, jeonse has decreased by 34,883 units, while monthly rent has increased by 51,760 units.
Notably, the total number of rental units in Seoul increased from 584,124 to 601,001, a rise of about 17,000 units during the same period. This indicates that the increase in monthly rent is more pronounced than a significant rise in rental demand. It suggests a rapid expansion of the monthly rent segment within the rental market.
The share of monthly rent dropped to 28.8% (172,876 units) during the COVID-19 pandemic in 2020 but surged to 38.4% in 2021. It slightly decreased to 37.2% in 2022 and 35.6% in 2023, but rose again to 38.1% in 2024.
There are forecasts that the trend toward monthly rent in Seoul's rental market may accelerate further. Recent reforms in real estate taxation have emphasized actual residence, raising concerns about a potential decrease in jeonse availability.
If the tax burden on multiple homeowners and non-resident single homeowners increases, it is anticipated that landlords may either sell their properties or convert jeonse into monthly rent. Should the reduction in jeonse supply materialize, tenants may face increased monthly rent burdens.
Meanwhile, the government announced on August 13 plans to supply over 230,000 new housing units, including new sites in the metropolitan area, as part of a strategy to stabilize the rental and sales markets. A new public-private rental model aimed at ensuring housing stability for young people and newlyweds, to be operated for over 20 years, is also in the works.
* This article has been translated by AI.
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