In areas such as Apgujeong and Mokdong, where large-scale reconstruction projects are underway, rent prices are soaring dramatically. The purchase price has sharply increased, and despite the aging apartments, it seems that the demand for leasehold rentals is high due to favorable living conditions such as school districts and amenities.
According to the real estate big data platform Asil on the 21st, a lease contract for a 160㎡ unit in the Hyundai 1st and 2nd complexes in Apgujeong-dong, Gangnam-gu was signed for 2 billion won (11th floor) on the 16th. This is a property located near the Han River and is identified as a so-called "royal" property. It is an increase of 740 million won compared to the previous lease price of 1.26 billion won (4th floor) which was renewed a month ago.
The lease price for a 245㎡ unit in the Khuandae 6th and 7th complexes in Apgujeong-dong rose by 700 million won compared to the transfer price. A lease contract was signed for 2.3 billion won (7th floor) on January 22nd, and it reached 3 billion won (3rd floor) on the 8th. The same size unit in this apartment recorded a highest lease price of 4 billion won on January 20th last year.
Both apartments are located in the Apgujeong 3rd district where reconstruction projects are actively underway. Completed in 1976 and 1979, they are aging apartments that are about 50 years old. Although the interior and exterior are quite worn, demand to enjoy school districts and infrastructure remains high.
In Mokdong, lease prices are also rising. The lease price for a 151㎡ unit in the 13th complex of the Mokdong New Town in Sinjeong-dong, Yangcheon-gu was reported at 1.05 billion won (7th floor) on the 11th. Considering that the renewal transaction price was around 800 million to 900 million won last year, this is a significant increase. A new lease contract for the same size unit was signed for 1.2 billion won on December 21st last year. The Mokdong area has seen an increase in lease prices due to its accessibility to school districts and institutes.
A representative from a brokerage office in Sinjeong-dong noted, "The large units in the 13th complex should now be considered to be over 1 billion won," adding that "there are currently no available properties, and contracts have been signed recently even in a semi-lease format."
Yoon Ji-hae, a senior researcher at Real Estate R114, said, "In cases like Apgujeong and Mokdong, it is hard to view it as a typical lease market," and added, "Since homeowners find it inconvenient to live there themselves, they rent them out, and there is a high demand for that, which is driving the prices up."
Meanwhile, according to the Korea Real Estate Board, the lease prices for apartments in Seoul rose by 0.23% in March compared to the previous month. This is a larger increase than the 0.07% rise from a month ago. The board diagnosed that a shortage of listings in certain preferred complexes is leading to an expansion of the rise.