Seoul Rental Market Faces 'Double Supply Gap' Next Year as Move-ins Halve, Registered Rentals Expire

Seoul's apartment rental market is bracing for a significant "double supply gap" next year, as the number of new apartments available for move-in is projected to drop by nearly half. This decrease in supply is compounded by the expiration of mandatory rental periods for approximately 22,000 registered rental apartments.

The dwindling supply is attributed partly to Seoul's reliance on redevelopment projects for new housing. These projects, often involving reconstruction and redevelopment, typically take over five years from approval to completion, making it difficult to quickly increase housing stock.

With new apartment move-ins expected to fall to 18,475 units next year from 32,703 this year, according to Real Estate R114, and a similar decline projected by Z.IPPY, the rental market is tightening. This situation follows a more than 5% increase in Seoul's rental prices this year, raising concerns about a further exacerbation of the rental crisis for residents.