▶ RSQUARE publishes '2026 Seoul Co-Living Market Report: Residence Away from Ownership, Changing the Stay'
▶ Seoul officetel Jeonse transactions decline 11%, while monthly rent transactions surge 16%… "Structural change in leasing market accelerates"
▶ Seoul co-living supply reaches 7,377 rooms, with investment volume hitting 385.0 billion KRW… evolving beyond long-term leases into operating residential assets
As the domestic leasing market, which was traditionally centered on the Jeonse (lump-sum deposit) system, rapidly restructures into a monthly rent framework, the co-living market sustains robust growth across supply, leasing, and investment sectors.
RSQUARE (CEO: Lee Yong-gyun), a comprehensive commercial real estate service firm, has published the '2026 Seoul Co-Living Market Report: Residence Away from Ownership, Changing the Stay.'
According to the report released on the 21th, Jeonse transactions for officetels in Seoul declined by 11% in 2025 compared to 2024, whereas monthly rent transactions surged by 16%. During the same period, the monthly rent index for apartments in Seoul also rose by 5.1%. The report analyzes that stricter regulations on Jeonse loans, the aftermath of Jeonse-related fraud, and a contraction in private Jeonse supply have combined to accelerate the leasing market's migration toward a monthly rent-centric structure.
Amid these shifts, the co-living market is expanding at a rapid pace. The supply of co-living spaces in Seoul has maintained an upward trajectory since the pandemic, expanding to a total of 7,377 rooms as of the first quarter of 2026. Last year alone, 1,120 rooms were freshly supplied, and an additional 198 rooms crossed the finish line in the first quarter of this year, including 'Episode Conveni Hongdae' and 'Weave Studio Dongdaemun East.'
The structural composition of supply is also undergoing a transition. While new inventory during 2023 and 2024 heavily favored hospitality facilities and multi-family housing, recent trends display a diversifying asset layout, with the proportion of officetel-based co-living supply expanding. Regionally, supply concentrated heavily around university districts and major employment submarkets, including Mapo-gu (1,055 rooms), Dongdaemun-gu (974 rooms), Geumcheon-gu (840 rooms), and Seocho-gu (804 rooms).
In this report, RSQUARE highlighted that co-living is evolving beyond simple small-scale rental housing into an 'Operating Residential Asset.' Leading operators are actively driving brand differentiation by integrating community programs, wellness services, and short-stay features. Some brands even operate daily contract products, effectively blurring the boundaries between long-term leasing and short-term lodging.
"Co-living is transforming from a mere residential space into a platform-type asset that generates operational revenue based on flexible living demands," the report explained.
The underlying demand base is also expanding structurally. While the overall population of Seoul is declining, the number of individual households continues to climb. The proportion of single-person households in Seoul is currently nearing 40% of the city's total households.
The investment market is mirroring this expansion. The transaction volume for Seoul co-living assets increased from 197.0 billion KRW in 2024 to 385.0 billion KRW in 2025. This indicates that despite cuts to the benchmark interest rate, market interest rates hover at high levels, intensifying investor focus on long-term hold assets backed by resilient operational yields.
"Co-living is evolving into a residential platform asset that generates revenue based on operational and service competitiveness, rather than remaining as conventional small-scale rental housing," stated Kyu-jung Choi, a research fellow at the RSQUARE Research Center. "As the transition from Jeonse to monthly rent, the rise of single-person households, and expanding demands for short-term stays intertwine, the structural shift in the urban housing market will accelerate even further."
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▶ RSQUARE publishes '2026 Seoul Co-Living Market Report: Residence Away from Ownership, Changing the Stay'
▶ Seoul officetel Jeonse transactions decline 11%, while monthly rent transactions surge 16%… "Structural change in leasing market accelerates"
▶ Seoul co-living supply reaches 7,377 rooms, with investment volume hitting 385.0 billion KRW… evolving beyond long-term leases into operating residential assets
As the domestic leasing market, which was traditionally centered on the Jeonse (lump-sum deposit) system, rapidly restructures into a monthly rent framework, the co-living market sustains robust growth across supply, leasing, and investment sectors.
RSQUARE (CEO: Lee Yong-gyun), a comprehensive commercial real estate service firm, has published the '2026 Seoul Co-Living Market Report: Residence Away from Ownership, Changing the Stay.'
According to the report released on the 21th, Jeonse transactions for officetels in Seoul declined by 11% in 2025 compared to 2024, whereas monthly rent transactions surged by 16%. During the same period, the monthly rent index for apartments in Seoul also rose by 5.1%. The report analyzes that stricter regulations on Jeonse loans, the aftermath of Jeonse-related fraud, and a contraction in private Jeonse supply have combined to accelerate the leasing market's migration toward a monthly rent-centric structure.
Amid these shifts, the co-living market is expanding at a rapid pace. The supply of co-living spaces in Seoul has maintained an upward trajectory since the pandemic, expanding to a total of 7,377 rooms as of the first quarter of 2026. Last year alone, 1,120 rooms were freshly supplied, and an additional 198 rooms crossed the finish line in the first quarter of this year, including 'Episode Conveni Hongdae' and 'Weave Studio Dongdaemun East.'
The structural composition of supply is also undergoing a transition. While new inventory during 2023 and 2024 heavily favored hospitality facilities and multi-family housing, recent trends display a diversifying asset layout, with the proportion of officetel-based co-living supply expanding. Regionally, supply concentrated heavily around university districts and major employment submarkets, including Mapo-gu (1,055 rooms), Dongdaemun-gu (974 rooms), Geumcheon-gu (840 rooms), and Seocho-gu (804 rooms).
In this report, RSQUARE highlighted that co-living is evolving beyond simple small-scale rental housing into an 'Operating Residential Asset.' Leading operators are actively driving brand differentiation by integrating community programs, wellness services, and short-stay features. Some brands even operate daily contract products, effectively blurring the boundaries between long-term leasing and short-term lodging.
"Co-living is transforming from a mere residential space into a platform-type asset that generates operational revenue based on flexible living demands," the report explained.
The underlying demand base is also expanding structurally. While the overall population of Seoul is declining, the number of individual households continues to climb. The proportion of single-person households in Seoul is currently nearing 40% of the city's total households.
The investment market is mirroring this expansion. The transaction volume for Seoul co-living assets increased from 197.0 billion KRW in 2024 to 385.0 billion KRW in 2025. This indicates that despite cuts to the benchmark interest rate, market interest rates hover at high levels, intensifying investor focus on long-term hold assets backed by resilient operational yields.
"Co-living is evolving into a residential platform asset that generates revenue based on operational and service competitiveness, rather than remaining as conventional small-scale rental housing," stated Kyu-jung Choi, a research fellow at the RSQUARE Research Center. "As the transition from Jeonse to monthly rent, the rise of single-person households, and expanding demands for short-term stays intertwine, the structural shift in the urban housing market will accelerate even further."