Seoul housing market sees villa transaction surge and shift to monthly rent

The Seoul housing market is experiencing significant shifts in both property types and rental structures. In the second quarter of this year, transaction values for villas (row houses and multi-family homes) in Seoul reached nearly 5 trillion won, marking the highest level since the second quarter of 2021. This surge is attributed to a ‘balloon effect’ where demand shifts toward villas due to ongoing regulations on apartments.

Simultaneously, the apartment rental market is seeing a distinct transition from the traditional Jeonse (lump-sum deposit) system to monthly rent. Data shows that the proportion of monthly rent households in Seoul apartments rose to 38.1% in 2024, up from 30.3% in 2017. While Jeonse households decreased by over 34,000, monthly rent households increased by more than 51,000 over the same seven-year period.

Experts suggest that market conditions, such as interest rates and tax reforms, continue to drive this trend toward monthly rentals. In response to housing stability concerns, the government has announced plans to supply over 230,000 additional housing units, including long-term public-supported private rental models for youth and newlyweds.