It is analyzed that the demand for ultra-high-priced monthly rent is supported by high-income groups such as professionals, self-employed individuals, and celebrities who feel burdened by taxes related to buying and holding high-priced real estate. As the sales and jeonse (long-term lease) markets shrink, there are increasing cases of transitioning to monthly rent, while the prices of monthly rents for high-end apartments in core areas of Seoul, where supply is limited, are soaring.
According to an analysis of data from the Ministry of Land, Infrastructure and Transport's real transaction disclosure system, commissioned by the Maeil Business Newspaper to the real estate research firm Real Today, there were 156 ultra-high-priced monthly rent transactions exceeding 10 million won in Seoul this year (as of November). This is a sharp increase compared to just 79 cases in 2021. The number of monthly rent transactions for apartments over 20 million won, which were once considered possible only for small buildings, has reached 21 cases this year. Nowadays, it is said that in Gangnam, Seoul, the price of ultra-high-priced apartment monthly rents is whatever the market demands. Acro Seoul Forest (with a dedicated area of 198.22㎡), located near Seoul Forest and home to many celebrities, was newly contracted last month for a deposit of 1 billion won and a monthly rent of 31 million won. In Seocho District, high-priced monthly rents are emerging in newly built apartments in Banpo-dong, such as Acro River Park and Raemian One Bailey.
The market expects that the demand for the ultra-high-priced monthly rent market will remain steady for the time being. The demand from high-income professionals, self-employed individuals, celebrities, influencers, and employees of foreign corporations, who are the main customers of the high-priced monthly rent market, is strong, and there is a steady influx of young asset holders who have risen to the 'young and rich' status through stocks and cryptocurrencies. In particular, young asset holders or high-income individuals nowadays tend to seek monthly rent even if they have sufficient funds, as they view owning high-priced real estate as a burden. They prefer to use their capital for business, stock, or cryptocurrency investments rather than tying it up as a jeonse deposit.
[Hwang Soon-min, Reporter]
