Monthly rents for officetels in Seoul rose 0.34 percent in August, the largest month-on-month increase since Korea Real Estate Board statistics began in 2018. The rise came as tight apartment jeonse supply and higher deposit-based rental prices pushed more tenants toward officetels.
The increase was broad across the capital. Central Seoul, including Jongno, Jung and Yongsan, rose 0.4 percent, while the southeast area that includes Seocho, Gangnam and Songpa gained 0.36 percent. The southwest area, including Yangcheon, Yeongdeungpo and Gangseo, rose 0.34 percent.
Larger officetels rose even faster
Units larger than 85 square meters posted a 0.49 percent monthly increase, also the strongest reading in the series. That suggests the pressure is not limited to small studio-style units and may reflect households looking for alternatives to increasingly expensive apartment rentals.
For renters, the data point to another segment of Seoul housing becoming more expensive rather than providing a stable escape from apartment costs. Future rent movements will depend on apartment jeonse supply, borrowing conditions and the amount of new rental stock reaching the market.