[Edaily Reporter SEOK JI-HOEN ] Monthly rent contracts exceeding 3 million won—a figure once seen only in high-end apartments in the Gangnam area—are now becoming increasingly common in outlying areas of Seoul, such as Nowon, Dobong, and Gangbuk (collectively known as “Nodogang”), as well as Geumcheon, Gwanak, and Guro (collectively known as “Geumgwanggu”).

According to the Ministry of Land, Infrastructure and Transport’s actual transaction price disclosure system on the 7th, a total of 40 transactions with monthly rents of 3 million won or more were recorded in six outlying districts of Seoul—including Nodogang and Geumgwang-gu—from January 1 to November 5 of this year. This represents an increase of approximately 2.7 times compared to the 15 transactions recorded during the same period last year.

In Nodogang, the number of such transactions increased more than fivefold, from 3 last year to 17 this year. In Geumgwan-gu, the number nearly doubled, rising from 12 to 23. By district, Guro-gu had the highest number with 15 transactions, followed by Nowon-gu (10), Gwanak-gu (8), Gangbuk-gu (6), and Dobong-gu (1).

For example, a unit with a usable area of 128 square meters at “D-Cube City” in Sindorim-dong, Guro-gu, was leased last August with a security deposit of 100 million won and a monthly rent of 4.5 million won. A unit with a usable area of 84 square meters at “Hanwha Forena Mia” in Mia-dong, Gangbuk-gu, was leased last June with a security deposit of 50 million won and a monthly rent of 3.15 million won. A unit with an exclusive area of 115 square meters at “Shindonga” in Junggye-dong, Nowon-gu, was also leased with a security deposit of 300 million won and a monthly rent of 3.4 million won.

Housing prices and jeonse prices in Seoul’s outlying areas are also on the rise. According to the Korea Real Estate Board, Seoul apartment sales prices rose 0.07% in the first week of November compared to the previous week. The rate of increase in outlying areas—such as Geumcheon-gu (0.30%), Gangbuk-gu (0.26%), and Guro-gu (0.25%)—significantly exceeded the Seoul average.

The cumulative increase in Seoul apartment jeonse prices this year was 9.10%, higher than the increase in sales prices (8.80%).

Analysts attribute the rise in jeonse prices to a decrease in rental listings. They explain that stricter residency requirements and the reinstatement of surtaxes on capital gains for multi-homeowners have given landlords greater incentive to live in their properties or sell them rather than rent them out, while the supply of new units is also declining.

Tenants are also turning to monthly rent or “half-jeonse” (a hybrid of jeonse and monthly rent) due to the burden of higher jeonse deposits and loan payments. With rental listings decreasing while demand for monthly rent increases, upward pressure on rental rates is intensifying.

In fact, from January through September of this year, monthly rent accounted for 51.0% of apartment lease transactions in Seoul, a 7.3 percentage point increase from the same period last year. The average monthly rent for apartments in Seoul in September was 1,661,000 won, up 15.1% from a year ago.