As rental transactions for apartments in Seoul have contracted, the proportion of monthly rents has surpassed half. Demand for high-end monthly rentals, which was previously concentrated in Gangnam and Yongsan, is now spreading to luxury new constructions along the Han River in Seongdong and Gwangjin, indicating a shift in the landscape of Seoul's high-end rental market.
According to the Ministry of Land, Infrastructure and Transport's real transaction disclosure system, from January to September 5 of this year, a total of 80,588 rental transactions for apartments in Seoul were recorded. Among these, monthly rent transactions accounted for 44,544 cases, making up 56.3% of all rental agreements.
Overall rental transactions have decreased by 19.3% compared to the same period last year (99,820 transactions). In contrast, monthly rent transactions have only decreased by 2.1% from last year's 46,405 cases, showing a relatively stable trend. Despite a significant contraction in rental transactions, the decline in monthly rent transactions has been limited, indicating a continued focus on monthly rental agreements.
In the high-end rental market, the range of transaction locations is expanding. As of today, there have been 172 monthly rental contracts in Seoul exceeding 10 million won. While transactions were traditionally concentrated in upscale residential areas like Yongsan, Seocho, and Gangnam, double-digit transactions are now also emerging in Seongdong and Gwangjin, indicating the expansion of high-end rental areas along the Han River.
By district, Yongsan recorded the highest number of transactions at 59, followed by Seocho with 35, Gangnam with 28, and Seongdong with 24. Gwangjin had 14 transactions, while Yeongdeungpo had 4, Jongno had 3, Songpa had 2, Seodaemun had 2, and Mapo had 1.
Notably, Gwangjin has seen a surge in high-end monthly rental transactions, increasing from just 1 last year to 14 this year, despite an overall contraction in rental transactions. This growth is attributed to the influx of residents into new luxury developments along the Han River, leading to the formation of a new high-end rental market.
Of the 14 monthly rental transactions exceeding 10 million won in Gwangjin this year, 13 were from Poseidon's Han River. A 216-square-meter unit at Poseidon's Han River was contracted in July for a deposit of 500 million won and a monthly rent of 25 million won.
Seongdong has also seen a series of high-end rental transactions. A 200-square-meter unit at Acro Seoul Forest was contracted in June for a deposit of 500 million won and a monthly rent of 32 to 32.5 million won, while a 136-square-meter unit at Trimage was rented for a deposit of 200 million won and a monthly rent of 19.5 million won.
The recent influx of luxury new apartments along the Han River has broadened the options for high-income renters beyond Gangnam and Yongsan. The value of residential products, including upscale communities and river views, is becoming a key factor influencing choices in the high-end rental market.
Ko Jong-wan, director of the Korea Asset Management Institute, stated, "The value of residential products, including new constructions, community amenities, and landscaping, is becoming increasingly important. The premium that buildings provide is also reflected in the pricing."
The upward trend in monthly rental prices across Seoul continues. Monthly rental prices for apartments in Seoul rose by 1.15% in June and by 1.22% in July. The cumulative increase for the year stands at 5.73%. While overall rental transactions are declining, the relatively stable demand for monthly rentals is contributing to the continued rise in monthly rental prices.
* This article has been translated by AI.
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