Jeju Island, which saw the largest increase in Jeonse prices in the country last year
Stable since the end of last year… Seoul also supplies 4 weeks in a row↑
Ministry of Land, Infrastructure and Transport to induce stability by significantly increasing the amount of jeonse for next year
However, concerns about price surge due to increase in new contract volume in August
The Jeonse supply and demand index fell below 100 in Jeju-do, which saw the largest increase in apartment rental prices among cities and provinces nationwide this year. This means that supply is greater than demand. In Seoul, there are already more landlords looking for tenants than those looking for jeonse for four weeks in a row.
According to the Korea Real Estate Agency on the 1st, the Jeonse supply and demand index for apartments in Jeju Island recorded 98.3 this week (as of December 27 of last year). The Jeonse supply and demand index is expressed as a number between 0 and 200, and as it goes below the reference point of 100, it means that there is more supply than demand for Jeonse.
It is the first time since the fourth week of December 2020 that this index has fallen below 100 in Jeju Island. In Jeju Island last year, as house prices soared nationwide, the perception that house prices were undervalued spread, and demand for sales and jeonse was concentrated.
In particular, in the case of the Jeonset price, over the past year It rose 16.02%, recording the highest rate of increase among 17 cities and provinces nationwide. In 2017, as the number of Chinese tourists decreased due to the controversy over the deployment of the high-altitude missile defense system (THAAD), the Jeju real estate market showed a downward trend for more than three years, but it continued to thrive last year.
Recently, as the real estate market across the country has begun to stabilize, the upward trend in Jeju Island is stagnating. The increase in the Jeonse price for apartments in Jeju Island, which was 0.29% in early December last year, fell to 0.02% this week.
An official from the Real Estate Agency explained, “Jeonse is increasing and there are not many new contracts.”
In Seoul, the Jeonse supply and demand index recorded 95.7 this week, continuing a decline below the reference point for the fourth consecutive week. The Jeonse market is shrinking nationwide as the government’s loan regulations are tightened and the demand for new contracts has decreased due to the exercise of the right to renew the contract.
The government is in a position to induce market stability by significantly increasing the supply of jeonse next year. According to the Ministry of Homeland Supplying new leased housing such as public jeonse housing (9,000 households), new purchase agreement (23,000 households), and non-household remodeling (7,000 households), We will also promote deregulation of modular housing that allows for rapid housing construction.
In particular, the period for the maintenance project is distributed in consultation with local governments so that the rental demand is not concentrated in a specific period or region and aggravates the jeonse crisis. It also plans to provide information on the amount of occupancy to prevent the concentration of jeonse demand during the moving season.
However, there is also a forecast that the jeonse market will look unstable next year due to the side effects of the right to apply for contract renewal and the introduction of the monthly rent limit system. It is pointed out that if the amount of deposits with the upper limit of 5% starts to be released through new contracts after August next year, landlords will raise the price for four years in advance considering the lessee’s exercise of the right to renew the contract in the future.
Reporter Moon Won-won [email protected]
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