Seoul villa prices rise 1.96% in January-July as apartment curbs shift demand

Seoul villa, or row house, prices are rising faster this year as demand shifts away from apartments hit by tighter purchase rules and lending restrictions, while rental pressure is intensifying across non-apartment housing used heavily by younger residents. KB Real Estate said the Seoul row house sales price index increased 1.96% from January to July, up 2.4 times from the 0.83% gain in the same period last year, and the average sales price reached a record ₩358.13 million in July. At the same time, jeonse supply is tightening: the Seoul row house jeonse price index rose 1.39% from January to July, and the jeonse supply-demand index reached 113.0 in June, its highest in about 10 years since April 2016. Around universities, rising studio rents are pushing students away from studios and officetels toward lower-cost gositels and boarding houses. The Korea Real Estate Board’s integrated monthly rent price index for Seoul reached 103.35 in June, the highest since the index began in 2015, while Dabang said average monthly rent for studio apartments of 33 square meters or less near 10 major Seoul universities was ₩622,000 with maintenance fees of ₩82,000 based on a ₩10 million deposit, up 2.0% and 5.1% respectively from a year earlier. In Sinchon, eight of 10 gositels contacted on Aug. 14 were already full, underscoring how higher rents and weak economic conditions are pushing more students into cheaper, smaller shared housing.

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