Four out of 10 apartment lease contracts made in Seoul in August were for monthly rent, as more landlords are shifting their jeonse long-term deposit units to monthly rent in an effort to make up for their high real estate taxes.
The overheated property market has even lent sizzle to demand for apartments on the auction block. Some properties that have been foreclosed and auctioned off by are going for prices higher than ordinary apartments in the same complex.
A bird's-eye view of apartments from Namsan Seoul Tower, central Seoul, on Thursday. Prices of wolse, or monthly rent, in August rose 0.9 percent on year. The figure is the biggest on year rise since July 2014.
According to Korea Real Estate Board, the price of homes in Seoul in July was up 0.6 percent on month, the highest rate of increase since July last year's 0.71 percent on-month increase.
Despite tightened regulations, real estate prices are still on the rise as a shortage of available apartments increases demand.
Until recently a laggard in the property boom, the Jeju market is starting to make up for lost time as buyers flock to the island.
More apartments are being given away these days, and the real estate policies of the Moon Jae-in administration are being blamed by some.
Koreans are fleeing Seoul and moving to nearby areas due to soaring apartment prices, neighborhoods targeted becoming more expensive as a result.
According to data from the Ministry of Land, Infrastructure and Transport on Wednesday, an 84-square-meter apartment in Acro River Park changed hands at 3.98 billion won on June 19, up 130 million won, or 3.5 percent in only two months.
Gap investment is booming in Korea, with investors mainly targeting small properties located outside restricted areas and with a government-assessed value under 100 million won ($88,500).