Even Nowon Residents Pay 7 Million Won a Month...High Monthly Rents Spread to Outlying Areas

[Financial News] The era of 5 million won monthly rents has arrived even in outlying apartment districts such as Guro-gu and Nowon District in Seoul. High monthly rents, once considered exclusive to expensive apartments in the Gangnam area, spread to major complexes in Gangbuk before reaching outlying areas. Those on the ground say this is one aspect of the “disappearance of jeonse and surge in monthly rents” created by various regulations.
According to Ministry of Land, Infrastructure and Transport (MOLIT) statistics on the 9th, the first monthly-rent transactions of 5 million won or more were recorded this year even in outlying areas such as Guro-gu and Nowon District in Seoul. The number of areas with monthly rents of at least 5 million won has also risen to 18.
In Guro-gu, a 176-square-meter unit at D-Cube City in Sindorim-dong was leased on the 3rd for a deposit of 100 million won and monthly rent of 5.8 million won. According to MOLIT statistics, this is the highest monthly rent recorded in Guro-gu. Earlier, in February, a 152-square-meter unit in the same complex was leased for 5.1 million won a month.
High monthly-rent transactions have also emerged in Nowon District. In March, a 115-square-meter unit at Cheonggu in Junggye-dong was leased for 7 million won a month. The lease was converted to monthly rent with a deposit upon renewal.
According to MOLIT statistics, 18 of Seoul’s 25 districts—including Guro-gu and Nowon District—have recorded monthly rents of at least 5 million won this year. The era of 5 million won monthly rents has arrived in seven out of every 10 areas of Seoul.
Monthly rents have risen particularly sharply in Seoul’s Gangbuk area this year. According to the Korea Real Estate Board (KREB), monthly rents rose 6.61% in the Gangbuk area and 4.97% in the Gangnam area through July. The average monthly rent for apartments in the Gangbuk area also surpassed 1.5 million won for the first time, reaching 1.522 million won as of July.
As a result, transactions involving monthly rents of at least 5 million won for Seoul apartments have surged. According to MOLIT statistics, there were 1,610 such transactions through September 9 this year, up 19% from 1,351 during the same period last year. Looking at transactions of at least 5 million won during the same period by year, there were only 413 in 2021. The figure surpassed 1,000 for the first time in 2024, reaching 1,105.
Ko Jun-seok, a professor at Yonsei University, said, “As various regulations, including those on actual demand, overlap, transactions involving monthly rents of at least 5 million won are spreading from Gangnam to major complexes in Gangbuk and now to outlying areas. In particular, rising interest rates are expected to accelerate the conversion of jeonse into monthly rent.”
An industry official said, “The number of transactions involving monthly rents of at least 5 million won has increased nearly fourfold, from around 400 to around 1,600. It is concerning that the pace of conversion to monthly rent and price increases has accelerated so rapidly in recent years.”
[email protected] Lee Jong-bae Reporter