Savills – Korea Residential Market Outlook, Mar 2025

The main theme of the report concerns changes in the residential real estate market in Korea, with a focus on housing rental.

Key findings include the shift from the Jeonse system (lump-sum deposit) to monthly rent, expected to continue. Active investments by foreign investors in the rental housing sector through various strategies, including asset acquisition and purchasing shares in REITs. Decline in housing prices due to rising interest rates and decreased demand for Jeonse, leading to increased cases of deposit defaults. Increase in the share of monthly rental contracts compared to Jeonse. Increased investments in rental housing by both local and foreign investors, focusing on high-quality housing and meeting tenant needs.