Seoul apartment rental price of 580 million… overtaking Apgujeong rental price in the early stage of the Wen regime

It was found that the average rent of apartments in Seoul has risen by an average of 78.16 million won (15.3%) for six months since the ‘3 lease law’ took effect in August last year. Compared to a year ago, it was 11,032 million won (23.1%).

Accordingly, last month, the average rental price of apartments in Seoul amounted to 58.827 million won, and the average price of 84 square meters of exclusive area with the largest number of households reached 570.49 million won. The JoongAng Ilbo analyzed the monthly KB housing price trend of KB Real Estate on the 2nd.

Considering that in May 2017, just after President Moon Jae-in took office, a 33 pyeong (82 m2) modern apartment in Apgujeong-dong, Gangnam-gu, Seoul was in the mid-500 million won, the average rental price in Seoul soared to the level of popular Gangnam apartments four years ago. At that time, the average rent for apartments in Seoul was 4,26.19 million won. The top 20% of apartment rental prices in Seoul (fifth quartile), the price based on 84m2 for apartments (96.66 million won) also jumped nearly 300 million won from 4 years ago (61.628 million won).

The rent for apartments in Seoul jumped in earnest after the new lease protection law came into effect in August last year. For the three years from May 2017 to July last year, the average rental price of apartments in Seoul rose 17.1%, which is similar to the increase rate of the last six months (15.3%).

Experts analyze that as the number of existing tenants residing in existing houses for two more years using the’contract renewal application right’, the rent for rent has decreased significantly, and the rent for the rent has jumped. The fact that the landlords tried to raise the deposit for four years in advance is also a factor in the surge in rent for rent.

Over the past six months, the average apartment rental price in Gangnam (15.6%) has risen more than in Gangbuk (14.6%). The average price increases in Songpa-gu (20.8%), Eunpyeong-gu (21.3%), and Gangdong-gu (18.7%) were high.

The trend of rising jeonse prices is spreading throughout the metropolitan area. This is because real demand for charter is being driven by the Gyeonggi area close to Seoul as the Seoul charter price has risen significantly. According to monthly KB housing price trends, last month, the average rental price of apartments in the metropolitan area exceeded 400 million won for the first time.

The period for the rising price to reach 50 million won is also getting shorter. The price of chartered apartments in the metropolitan area, which exceeded 300 million won in November 2016, surpassed 350 million won in September last year after three years and 10 months. On the other hand, the time it took to break through 400 million won was only 4 months until last month. In Gyeonggi Province over the past six months, the places where the rental price has been the most are in Seongnam Bundang-gu (29.4%), Gwangmyeong-si (28.5%), Yongin Suji-gu (27.3%), and Giheung-gu (26.1%).

As jeonse prices have soared, the rise in trading prices has not stopped. Based on KB Real Estate, the average price of apartments in Seoul exceeded 1 billion won for the first time in September last year, and rose by 7.7% (98.503 million → 1.06.08 million won) over the past five months.

Park Won-gap, chief real estate expert at KB Kookmin Bank, said, “There is a phenomenon of stagnation of chartered properties in some areas, but this year, the number of occupants decreased and more than 70% of the cases of re-contracting for charter using the right to apply for contract renewal have been locked. It seems that it will continue,” he analyzed, “the jeonse market is likely to remain unstable this year.”

Reporter Kim Won [email protected]