▲ This aerial view of apartment and villa complexes in Seoul is seen from Seoul Sky, the observation deck at Lotte World Tower in Songpa-gu, Seoul, on the 7th. (Photo: Yonhap News)
Over the past seven years, the number of jeonse (lump-sum deposit-based lease) households in Seoul apartments has decreased by more than 30,000, while monthly rent households, including semi-jeonse, have increased by over 50,000, data showed.
With the total number of rented households showing only a slight increase, the growth in monthly rent households has outpaced the decline in jeonse households, suggesting a clear trend of jeonse being replaced by monthly rent.
According to an analysis of microdata from the Korea Housing Survey provided by the Korean Statistical Information Service (KOSIS), jeonse households in Seoul apartments accounted for 371,972 households, or 61.9 percent, in 2024, while monthly rent households (including those with or without deposits) accounted for 229,029 households, or 38.1 percent.
When the current sample system was first implemented in 2017, jeonse households stood at 406,855, or 69.7 percent, and monthly rent households at 177,269, or 30.3 percent.
Over the seven-year span, the proportion of jeonse dropped by 7.8 percentage points, while the proportion of monthly rent rose by the same margin.
In terms of household numbers, monthly rent increased by 51,760 households, whereas jeonse decreased by 34,883 households.
During the same period, total rented households in Seoul apartments increased by only about 17,000, moving from 584,124 to 601,001.
Looking at the timeline by period, the proportion of monthly rent hit a low of 28.8 percent (172,876 households) in 2020 before surging by nearly 10 percentage points to 38.4 percent in 2021.
After slightly declining to 37.2 percent in 2022 and 35.6 percent in 2023, the figure rose again to 38.1 percent in 2024.
An official from the Korea Research Institute for Human Settlements (KRIHS), the agency that compiles the statistics, explained, "While fluctuations can occur annually depending on market conditions such as interest rates and social sentiment, the overall trend points toward a decrease in jeonse and an increase in monthly rent."
Recent market projections suggest that this trend toward monthly rent could become even stronger.
This outlook stems from recent real estate tax revisions emphasizing "actual residency," which are expected to further constrain the jeonse market.
As tax burdens grow heavier for multiple homeowners and non-residing single-home owners, a growing number of landlords may choose to sell their properties or opt for monthly rent instead of jeonse.
Meanwhile, the government announced a housing supply stabilization plan on the 13th to swiftly supply more than 230,000 units, including new residential sites in the capital area.
The plan also introduces a publicly supported private rental model operated for over 20 years to stabilize housing for younger generations, such as young adults and newlywed couples.
(Photo: Yonhap News)
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