The proportion of monthly rent transactions in Seoul's rental market has surpassed 50% for the first time. This increase comes as the volume of jeonse transactions has significantly decreased, leading to a rise in the average monthly rent compared to last year.
According to data from the Seoul Real Estate Information Plaza on October 20, the number of monthly rent transactions for Seoul apartments from January to September this year reached 87,740, accounting for 51.0% of the total rental transactions (172,027). In the same period, the number of jeonse transactions was 84,287, which is 3,453 fewer than monthly rent transactions.
During the same period last year, monthly rent transactions totaled 90,310, while jeonse transactions were 116,272, resulting in a monthly rent proportion of 43.7%. This marks a 7.3 percentage point increase over the past year.
The increase in the proportion of monthly rent is largely attributed to the decline in jeonse transactions rather than a significant rise in monthly rent transactions. From January to September this year, the volume of monthly rent transactions decreased by 2.8% compared to the same period last year, while jeonse transactions fell by 27.5%. The decline rate for jeonse transactions was nearly ten times that of monthly rent.
If the current trend continues, the annual proportion of monthly rent transactions could exceed 50% for the first time this year. Since the statistics from the Seoul Real Estate Information Plaza began in 2011, the annual proportion of monthly rent has never surpassed half. Last year, it reached a record high of 44.5%.
The number of districts where monthly rent transactions outnumber jeonse transactions has also increased. In the first nine months of this year, 13 out of Seoul's 25 districts had more monthly rent transactions than jeonse, up from 4 districts during the same period last year.
New districts that surpassed jeonse transactions include Gangnam, Gangbuk, Gwanak, Gwangjin, Dongdaemun, Mapo, Yeongdeungpo, Yongsan, and Jungnang, in addition to Geumcheon, Jongno, Jung, and Guro.
Jongno district had the highest proportion of monthly rent at 65.6%, followed by Jungnang (64.9%), Guro (63.1%), Jung (59.6%), Geumcheon (58.7%), and Yongsan (56.9%).
Notably, Jungnang district saw the largest increase in monthly rent proportion, rising from 44.6% last year to 64.9% this year, a jump of 20.3 percentage points. During the same period, monthly rent transactions increased from 2,166 to 4,151, a 91.6% rise, while jeonse transactions decreased from 2,687 to 2,244, a 16.5% drop.
Gangnam district also reported a higher volume of monthly rent transactions, with 8,406 compared to 7,170 for jeonse, raising the monthly rent proportion from 48.6% last year to 54.0% this year.
In contrast, Yangcheon district had the lowest monthly rent proportion at 42.1%. Seongbuk and Dobong districts had proportions of 44.7%, while Gangseo had 45.6% and Dongjak had 46.0%, indicating a higher volume of jeonse transactions.
Monthly rent prices have also risen. According to the Korea Real Estate Agency's national housing price trend survey, the average monthly rent for Seoul apartments in September was 1.661 million won, an increase of 218,000 won from the same month last year (1.443 million won). The median monthly rent also rose from 1.2 million won to 1.4 million won during the same period.
It is important to note that the apartment transaction data from the Seoul Real Estate Information Plaza is based on contract dates and may be subject to change due to transaction reports and contract cancellations.
* This article has been translated by AI.
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