High-End Monthly Rent Deals on Seoul's Outskirts Surge 2.7-Fold

Monthly rent transactions of 3 million won or more in six outer Seoul districts — Nowon, Dobong, Gangbuk, Geumcheon, Gwanak and Guro — jumped about 2.7-fold, from 15 cases in the same period last year to 40 this year. The trend signals that high-end monthly rents are becoming routine even on Seoul's outskirts, driven by rising jeonse (lump-sum deposit lease) prices and growing demand for monthly rentals.

Notable high-end rent deals have indeed been recorded. A 128-square-meter unit at D-Cube City in Sindorim-dong, Guro District, was leased in August with a 100-million-won deposit and a monthly rent of 4.5 million won. An 84-square-meter unit at Hanwha Forena Mia in Mia-dong, Gangbuk District, went for a 50-million-won deposit and 3.15 million won in monthly rent in June. A 115-square-meter unit at the Sindonga complex in Junggye-dong, Nowon District, was also leased with a 300-million-won deposit and a monthly rent of 3.4 million won.

According to the Korea Real Estate Board, Seoul apartment sale prices rose 0.07% week-on-week in the first week of November. Gains in Geumcheon (0.30%), Gangbuk (0.26%) and Guro (0.25%) exceeded the Seoul average that week. This year, Seoul apartment jeonse prices are up a cumulative 9.10%, with sale prices up 8.80%.

In Seoul apartment rental transactions from January to September this year, monthly rentals accounted for 51.0%, up 7.3 percentage points from the same period last year. The average monthly rent for Seoul apartments in September stood at 1.661 million won, up 15.1% from a year earlier.