News Prism examines the shift from jeonse to monthly rent in the rental market
For the first time on record in Seoul, monthly rent transactions have surpassed jeonse (lump-sum deposit leases). Of the roughly 170,000 jeonse and monthly rent transactions for Seoul apartments from January to September this year, monthly rent accounted for about 87,700 deals (51%), some 3,400 more than the roughly 84,200 jeonse deals. The trend toward 'monthly rentals,' where people live without a large lump sum and pay rent each month, has become pronounced — a sign that more people are choosing monthly rent to reduce their deposit burden.
The reversal happened within just one year. During the same period last year, monthly rent transactions numbered about 90,300 while jeonse transactions totaled about 116,200, meaning monthly rent was around 23,000 lower. In a single year, the share of transactions flipped, with the monthly rent share rising by 7.3 percentage points.
The shift toward monthly rent is also appearing at the district level. Of Seoul's 25 autonomous districts, 13 recorded more monthly rent transactions than jeonse deals. Jongno District had the highest monthly rent share at 65.6%, while Jungnang and Guro Districts also posted shares in the 60% range. Jung, Geumcheon, Yongsan, Dongdaemun, Gwanak, and Mapo Districts followed.
Jungnang District's monthly rent share jumped 20.3 percentage points, from 44.6% in the same period last year to 64.9% this year — the largest increase in Seoul. Monthly rent transactions rose 91.6%, from about 2,100 last year to about 4,100 this year, while jeonse transactions fell 16.5%.
The change is attributed to a shrinking supply of jeonse housing, driven by tightened regulations on jeonse loans and an increase in contract renewals by existing tenants. The average monthly rent for Seoul apartments rose by 210,000 won over the past year, and high-end monthly rents exceeding 3 million won per month are also increasing in Nowon, Dobong, and Gangbuk Districts — the so-called 'Nodo-gang' area.
The government maintains that the shift from jeonse to monthly rent is a natural change. Whether land transaction permit zones will be redesignated in key areas of the capital region will be decided at the end of this year, and the Ministry of Land, Infrastructure and Transport says it will decide after assessing market conditions.
