Seoul sees soaring rents as government housing supply plan sparks political clash

In Seoul, high‑rent contracts are rapidly increasing. From January to early June, 26,852 new monthly‑rent deals were signed, with contracts of 1 million won (≈$770) or more accounting for 49.2% of all deals – up 3.8 percentage points from the previous year. Rentals of 3 million won or more rose to 9.4% of contracts, a two‑point increase from a year earlier. The city’s average monthly rent in April reached 1.246 million won, 7.8% higher than a year earlier, and outer districts are seeing similar jumps.

The government has announced a plan to add 60,000 housing units in key Seoul‑area sites such as Yongsan International Business District, Taereung Golf Course in Nowon, and the Gwacheon race‑course, but the new Seoul mayor and local officials have opposed the proposals, citing concerns over traffic, infrastructure and feasibility. The mayor favors private‑sector redevelopment to deliver 310,000 units by 2031, while the Ministry of Land, Infrastructure and Transport stresses a public‑led approach. Negotiations are expected to intensify as both sides seek to shape the city’s housing future.