Seoul, South Korea – A recent study by the company behind the real estate information platform ‘Dabang,’ has found that the rent for one-room apartments (with a floor area of 33 square meters or less) in Seoul’s major university districts has risen by over 15% in the past year.
The data from Dabang showed that, as of last month, the average monthly rent for one-room apartments in these university districts, based on a deposit of 10 million KRW (approximately $8,300), was 596,000 KRW (about $500). This figure represents a 15.1% increase compared to March of the previous year when the average rent was 517,000 KRW (roughly $430).
The number of university districts with average rents above 600,000 KRW grew from two (Sogang University and Ewha Womans University) in March last year to six last month. The Ewha Womans University area had the highest average rent at 835,000 KRW ($695), followed by Yonsei University at 695,000 KRW ($580), and both Chung-Ang University and Hanyang University at 655,000 KRW ($545). The surrounding areas of Korea University and Sogang University had an average rent of 620,000 KRW ($515).
This issue highlights two major challenges within South Korea’s education system: the concentration of prestigious universities in Seoul and the struggle of regional universities to meet their enrollment quotas. A recent report revealed that 14 out of 15 four-year universities in Busan failed to reach their enrollment targets this year. Although some universities have seen an increase in enrollment rates compared to last year, lower-ranked institutions may have to undergo restructuring.
Additionally, the limited living space in these one-room apartments could potentially have negative effects on students’ mental health. Living in cramped conditions might cause stress due to a lack of personal space and privacy, hinder one’s ability to engage in hobbies or have a designated workspace, and discourage social interactions.
To address the housing problem and promote better mental well-being among students, the government could incentivize the decentralization of prestigious universities by encouraging them to establish branches or campuses in other cities. This strategy would not only help distribute educational resources more evenly across the country but also reduce housing demand in Seoul’s university districts.
The situation in South Korea demonstrates the challenges that can arise when prestigious educational institutions are concentrated in a few major cities, leading to increased housing demand in these areas, subsequent rent increases, and potential negative impacts on mental health. A comprehensive approach that encompasses education policies, urban planning, and housing regulations is needed to tackle this issue.
