Seoul vs. Melbourne: The Housing & Cost of Living Differences You Need to Know

When moving between countries, one of the biggest adjustments is housing—where you live, how much it costs, and the way the market operates.

Coming from Korea to Australia, I noticed significant differences in not just the types of homes people prefer but also how they rent or own them.

Let’s dive into the key contrasts between housing and the cost of living in Seoul and Melbourne (or Australia in general).



1. Housing Types: Apartment vs. House

In Korea, the vast majority of people live in high-rise apartments due to limited land space, especially in major cities like Seoul.
Standalone houses exist but are far less common.

In contrast, Australians still largely prefer detached houses with gardens, though apartment living is growing in major cities. 

2. Renting & Ownership: Different Systems

Korea has three main ways to secure a home:

  • Owned (자가) – Buying a home outright.

  • Jeonse (전세) – A unique system where tenants pay a large lump sum deposit (often 50-80% of the property’s value) and live rent-free for 2-4 years. The owner invests the deposit instead of collecting rent.

  • Wolse (월세) – A monthly rental system with a smaller deposit and ongoing rent payments, similar to what is standard in Australia.

In Australia, it’s either you own or rent, with rentals typically structured on a month-to-month or annual lease basis. There’s no lump sum deposit system like Jeonse in Korea. 

3. Lease Duration & Flexibility

  • In Korea, Jeonse contracts are usually for 2 years, while Wolse (monthly rent) can be negotiated for a year or longer.

  • In Australia, leases typically start with a 6-month or 12-month contract, with an option to renew or go month-to-month afterward.

4. Management Fees & Additional Costs

  • In Korea, apartment residents pay a 관리비 (management fee) that covers security, building maintenance, and shared utilities. These fees vary widely based on apartment facilities.

  • In Australia, standalone house owners don’t have mandatory management fees, but apartment renters or owners in complexes pay a strata fee for building maintenance. The water, electricity, and gas are often a separate utility fee that the tenant needs to pay. 

  • Real estate agencies in Korea charge to both owner and tenant, whereas in Australia, charges to the landlord only and normally the real estate agent commissions in Australia are nortably higher than Korea. 

5. Cost of Living: Seoul vs. Melbourne

  • Rent: Seoul’s Jeonse system makes home rental more affordable for those who can afford the lump sum, whereas Australian rentals require a constant monthly payment. However, property prices in both cities are high.

  • Groceries: Australia’s groceries are more expensive, whereas Korea’s local markets offer cheaper fresh food. 

  • Dining Out: Eating out is generally cheaper in Korea, thanks to affordable restaurants and street food, while in Australia, dining out is a luxury due to high wages. (but unlike the US, no tips are required) 

  • Utilities & Transport: Public transport in Korea is cheaper and more efficient, while in Australia, transport costs can add up, and car ownership is more common.

What’s Next? Buying a Home – The Process & Costs

Housing is just one part of the equation—what about buying a home in Korea vs. Australia? In my next blog, I’ll explore the home-buying process, including:

  • How auctions and private sales work in Australia.
  • The different steps and legal requirements.
  • The hidden costs—stamp duty, agent fees, legal expenses, and more.

Stay tuned for the next post if you’re curious about how buying a home in these two countries compares! 


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