"Get Paid, Then Pay the Rent" ... Seoul Studio Apartment Monthly Rents Also Hit 700,000 Won

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[The Financial News] Monthly rent for studio apartments in Seoul is rising sharply, pushing the housing burden on young people to a critical level. With monthly rent for a deposit of 10 million won now exceeding 700,000 won, complaints from tenants that "there is nothing left after getting paid and paying the rent" have become commonplace. In particular, rents in major areas such as Gangnam District have climbed into the 1 million won range.
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According to an analysis released on the 23rd by real estate platform Dabang of the Ministry of Land, Infrastructure and Transport's real transaction disclosure system, the average monthly rent for studio apartments in multi-family and row houses in Seoul with a floor area of 33 square meters or less, contracted in March, came to 710,000 won on a 10 million won deposit basis. That was up 5.2%, or 40,000 won, from the previous month.
The regional gap was even clearer. Gangnam District had the highest average monthly rent in Seoul at 1 million won. It was followed by Seocho District and Seongdong District at 860,000 won, Yongsan District at 840,000 won, Jungnang-gu at 820,000 won, and Gwangjin District at 770,000 won.
Rising rents in highly preferred downtown areas near subway stations and in Gangnam appear to have pushed up monthly rents across Seoul.
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By contrast, the jeonse market showed a slight decline. The average jeonse deposit for a studio apartment in Seoul stood at 213.86 million won, down 0.4% from the previous month. Concerns over jeonse fraud and a preference to avoid high interest rates appear to have shifted demand from jeonse to monthly rent, which is seen as a major reason for the surge in rent prices.
As rents soar, the housing cost burden relative to income for young people is also rising steadily.
According to the Ministry of Data and Statistics' Household Income and Expenditure Survey, actual housing expenses, including monthly rent, paid by households headed by people aged 39 or younger in the third quarter of last year averaged 214,000 won, surpassing the highest level since the statistical revision in 2019. The growth rate also reached double digits at 11.9% year on year.
y27k@fnnews.com Seo Yoon-kyung Reporter