Seoul officetel (small mixed-use residential units) rents have climbed as renters priced out of apartment jeonse and monthly leases move into the segment. The Korea Real Estate Board said the average Seoul officetel monthly rent last month reached 956,000 won, up 2.5% from January, while units of 40 square meters or less averaged 808,000 won. Supply is tightening sharply: Real Estate 114 projects only 1,700 Seoul officetel move-ins this year, less than one-tenth of the 21,108 units delivered in 2021. Meanwhile, sales activity weakened, with July transactions falling 27% month on month to 788, widening the divide between rental demand and ownership demand. Experts say apartment substitution demand, regulatory changes and limited new supply could keep rental costs rising, increasing pressure on young adults and single-person households.