The burden of finding a 'one-room' apartment in Seoul is growing. The average monthly rent for one-room apartments in Gwanak, an area popular with young people and single-person households, has surged by 30% in just one month to reach 870,000 won. Gangnam, the most expensive district in Seoul, follows closely with an average rent of 970,000 won, nearing the 1 million won mark. As apartment rental prices continue to rise, the financial burden on tenants is increasing across the board, from one-room units to larger apartments.
According to data analyzed from the Ministry of Land, Infrastructure and Transport on October 22, the average monthly rent for one-room apartments under 33 square meters in Seoul was 710,000 won, based on a deposit of 10 million won, marking a 5.2% increase from the previous month.
In Gwanak, the average rent jumped from approximately 670,000 won to 870,000 won, a 30.0% increase. However, this rise was partly influenced by some new constructions, meaning not all existing one-room rents increased by the same margin.
Gwanak is densely populated with one-room apartments, particularly in the areas of Sillim and Bongcheon-dong, and offers good access to Subway Line 2, making it a favored location for university students, job seekers, and young professionals. Paying 870,000 won in rent translates to an annual cost of 10.44 million won. When factoring in maintenance fees and utilities, the financial strain on young people with limited income and assets becomes even more pronounced.
Gangnam's average rent stands at 970,000 won, the highest among Seoul's 25 districts. This represents a 10.8% increase from the previous month, with even small one-room units nearing 1 million won in rent based on a 10 million won deposit. This is 260,000 won more than the overall average in Seoul, equating to an additional 3.12 million won annually. Geumcheon-gu also saw an average rent of 750,000 won, an 18.0% increase in one month, while Gwangjin-gu experienced a 12.2% rise.
Choosing jeonse instead of monthly rent also comes with significant financial burdens. Last month, the average jeonse deposit for one-room apartments in Seoul was 219.91 million won, a 1.1% decrease from the previous month, but still above 200 million won. Tenants must secure a large deposit for jeonse, while those opting for monthly rent face ongoing monthly payments, making both options challenging for young people with limited financial resources.
In the apartment market, sales prices have risen for 89 consecutive weeks, and rental prices continue to climb. According to the Korea Real Estate Agency's report on the third week of October, the average jeonse price for apartments in Seoul increased by 0.16% from the previous week. Although this is a slight decrease from the previous week's increase of 0.18%, it still surpasses the national average increase of 0.11%. The cumulative increase for the year stands at 8.73%, higher than the 8.63% increase in sales prices during the same period.
In Gwanak, apartment jeonse prices rose by 0.21% this week, a larger increase than the previous week's 0.19%, while Geumcheon-gu saw a 0.27% rise. The cumulative increase in jeonse prices for these two areas this year is 8.68% and 10.08%, respectively.
A real estate industry insider noted, “As sales prices in high-cost areas undergo adjustments, demand is shifting to relatively accessible regions. Meanwhile, buyers delaying home purchases are remaining in the rental market, driving up both jeonse and monthly rent prices.”
The proportion of residents living in rented accommodations is also expanding. According to the Seoul Real Estate Information Plaza, from January to September this year, there were 87,870 monthly rent transactions for apartments in Seoul, accounting for 51.0% of the total rental transactions of 172,227. This marks the first time that the monthly rent proportion has exceeded half since statistics began being collected.
The government views the shift from jeonse to monthly rent as a structural change driven by the increase in single-person households and the impact of jeonse fraud. The primary reasons for rising rental prices are attributed to a decrease in available units due to sluggish construction. The government plans to expand supply and provide housing cost support simultaneously.
Currently, the government is working to broaden the eligibility for youth rent support, which is capped at 200,000 won per month, and is promoting a 'Jeonse and Monthly Rent Assurance Trust' that supplies private rental housing in the form of public jeonse. This initiative aims to reduce the financial burden on tenants by expanding options for living in jeonse while also providing direct subsidies for monthly rent.
Hong Ji-seon, Minister of Land, Infrastructure and Transport, stated on her X account the day before, “Starting next year, we will relax income criteria for youth rent support to allow more young people to qualify. We will also proceed with a public offering for the Jeonse and Monthly Rent Assurance Trust project within the year, allowing landlords to utilize it like monthly rent and tenants like jeonse.”
* This article has been translated by AI.
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