Seoul apartment rents near average monthly wage, with fewer units available

A view of Seoul's residential areas as seen from the 63 Sky Picnic observation deck atop the 63 Building in Yeouido, Yeongdeungpo-gu. [Yonhap]

Monthly rents at major Seoul apartment complexes are increasingly approaching the average monthly salary of a single wage earner. Industry watchers expect the surge to continue as rental listings shrink, driven by landlords converting units to owner-occupancy and reduced supply under land transaction permit zones.

According to Naver Real Estate on Friday, the current monthly rent for a 59-square-meter unit at Raemian Gileum Centerpiece, a large apartment complex in Gileum-dong, Seongbuk-gu, ranges from 2.7 million won ($1,940) to 3 million won, based on a deposit of 200 million won. That marks a jump of nearly 1.4 million won from the early 2025 rate of around 1.6 million won for the same unit size. The asking price for an 84-square-meter unit has reached 3.2 million won per month on the same deposit basis.

Imun-dong in Cheongnyangni, a neighborhood popular with newlyweds, has also seen sharp rent increases. The monthly rent asking price for a 59-square-meter unit at Raemian La Grande in Imun-dong currently stands at 2.6 million won, based on a deposit of 100 million won. For a couple without children, total monthly housing costs — including maintenance fees and utilities — would come close to 3 million won. That is a marked increase from the 1.5 million won to 1.75 million won range seen in early 2025 for the same unit size and deposit level.

Monthly rental listings for Raemian Gileum Centerpiece. [Naver Real Estate]

Monthly costs for long-term hotel stays. [Hotel Esalm]

A monthly rent approaching 3 million won is enough to cover a premium serviced residence or hotel in a prime transit-oriented area. The 43-square-meter Premium Suite Queen unit at Wiveliving's Seonyu Parkside — which offers hotel-style housekeeping — runs 2.35 million won per month for stays of 10 months or longer.

High rents mean shrinking disposable income. According to a Ministry of Employment and Labor survey, the average monthly salary for Seoul workers stood at 4.765 million won as of April last year, based on total wages per worker at businesses with one or more full-time employees. For a single-income household paying 3 million won in rent, roughly 1.8 million won remains — and after taxes, transportation, food, utilities and communications costs, virtually nothing is left to save.

Average monthly rents are also setting new records. According to the Korea Real Estate Board, the average monthly rent for Seoul apartments reached 1.62 million won as of July, breaking through the 1.6 million won threshold. The phrase "all-time high" has become almost routine in describing the city's rent trajectory. Industry experts generally recommend keeping housing costs below 30 percent of monthly income — a benchmark known as the "30 percent rule" and widely regarded as a gauge of financial health. Yet Seoul apartment rents, averaging close to 1.6 million won, now account for 33 percent of the average Seoul worker's monthly salary, exceeding that threshold.

For civil servants and others in lower-paying fields — far below the wages seen in large conglomerates, IT, finance and professional services — even the average rent level can consume more than half of a monthly paycheck.

Compounding the problem is that even rental listings themselves are becoming scarce.

As of Friday, the number of monthly rental listings for Seoul apartments on the Asil platform stood at 17,393 — down 11 percent from 19,521 a year earlier. The decline is steeper in outlying districts. Among Seoul's 25 autonomous districts, Jungnang-gu saw the sharpest drop, with listings falling 65.8 percent from 277 to 95. Dongdaemun-gu (735 to 271) and Guro-gu (331 to 148) followed, with declines of 63.2 percent and 55.3 percent, respectively.

"Rents are rising in tandem with jeonse prices, so without a resolution to the supply problem, stabilizing monthly rents will not be easy for now," said Kim Hyo-seon, a senior real estate specialist at KB Nonghyup Bank. "As rents surge, those without storage or moving constraints may increasingly consider serviced residences in a similar price range."

hope@heraldcorp.com