RSQUARE: “Co-living Falls behind in Unit Count…Focus Must Shift to Tenant Experience”
As interest in co-living and corporate rental housing continues to rise, driven by an increase in single-person households and concerns around rental fraud, RSQUARE’s latest findings show that co-living needs to charge approximately 40% higher rent on average to deliver returns on par with corporate rental housing.
According to RSQUARE’s newly published ‘2025 Seoul Co-living Market Report Part 2’, in order to match the cash-on-cash (CoC) return of 3.43% seen in corporate rental housing, co-living spaces would need to charge an average of 40.3% more in monthly rent per 3.3㎡(1py).
Co-living typically includes shared spaces, with 2-3 tenants per unit and communal kitchens. By contrast, corporate rental units are designed for 1-2 person households, equipped with a private kitchen and bathroom within each unit, allowing residents to live independently without the need for shared amenities.
Factoring in a standard one-month rent-free period commonly offered in co-living rentals, the average effective monthly rent was calculated at 210,500 KRW per 3.3㎡. For corporate rentals with a layout optimized for maximum unit count (163 units in total without shared community spaces), the average monthly rent was 150,000 KRW per 3.3㎡. Based on these figures, the projected income yields were 3.98% for co-living and 3.96% for corporate rental housing.
The model used in the report assumes the acquisition of an officetel building with a total floor area of approximately 6,611.5㎡ (2,000py), ranging from 2 basement levels to 10 above-ground floors, purchased at 50 billion KRW, and operated with a standard deposit of 10 million KRW per unit.
목차
Part1. Regulatory Framework for Co-Living in Korea
Part2. Co-living and Officetel
Part3. Co-living vs Multifamily
Part4. Co-living Issue & Review
APX. Demand Outlook from Foreign Students in Greater Seoul
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RSQUARE: “Co-living Falls behind in Unit Count…Focus Must Shift to Tenant Experience”
As interest in co-living and corporate rental housing continues to rise, driven by an increase in single-person households and concerns around rental fraud, RSQUARE’s latest findings show that co-living needs to charge approximately 40% higher rent on average to deliver returns on par with corporate rental housing.
According to RSQUARE’s newly published ‘2025 Seoul Co-living Market Report Part 2’, in order to match the cash-on-cash (CoC) return of 3.43% seen in corporate rental housing, co-living spaces would need to charge an average of 40.3% more in monthly rent per 3.3㎡(1py).
Co-living typically includes shared spaces, with 2-3 tenants per unit and communal kitchens. By contrast, corporate rental units are designed for 1-2 person households, equipped with a private kitchen and bathroom within each unit, allowing residents to live independently without the need for shared amenities.
Factoring in a standard one-month rent-free period commonly offered in co-living rentals, the average effective monthly rent was calculated at 210,500 KRW per 3.3㎡. For corporate rentals with a layout optimized for maximum unit count (163 units in total without shared community spaces), the average monthly rent was 150,000 KRW per 3.3㎡. Based on these figures, the projected income yields were 3.98% for co-living and 3.96% for corporate rental housing.
The model used in the report assumes the acquisition of an officetel building with a total floor area of approximately 6,611.5㎡ (2,000py), ranging from 2 basement levels to 10 above-ground floors, purchased at 50 billion KRW, and operated with a standard deposit of 10 million KRW per unit.
목차
Part1. Regulatory Framework for Co-Living in Korea
Part2. Co-living and Officetel
Part3. Co-living vs Multifamily
Part4. Co-living Issue & Review
APX. Demand Outlook from Foreign Students in Greater Seoul