Jeonset price soaring, loan regulation doubled… Seoul apartment ‘monthly rent refugees’

‘Bomb on tax bill’ on the eve of the storm On the 21st, one day before the delivery of this year’s comprehensive real estate tax (special property tax) bill, a notice is attached to a real estate brokerage in Songpa-gu, Seoul, with a notice for advice on transfer tax and property tax. Yonhap News”/>

‘Bomb on tax bill’ on the eve of the storm On the 21st, one day before the delivery of this year’s comprehensive real estate tax (special property tax) bill, a notice is attached to a real estate brokerage in Songpa-gu, Seoul, with a notice for advice on transfer tax and property tax. yunhap news

56,169 monthly rental transactions this year
36.4% of rental contracts ‘highest in history’
Homeowners raise rent to raise taxes
‘The monthly rent of jeonse’ is getting faster
Songpa/Seocho-gu ranks 1st and 2nd in monthly rent increase

Monthly rental transaction volume for apartments in Seoul hit an all-time high. This is interpreted as the effect of an increase in the number of tenants choosing to pay monthly rent as the Jeonse loan regulations are tightened amid the sharp rise in Jeonse prices, and the number of lessors passing on the burden of holding tax to tenants has increased.

According to the statistics of the Seoul Real Estate Information Plaza on the 21st, the transaction volume of apartment rentals with monthly rent in Seoul from this year to the 20th was 56,169. It has already surpassed the previous high of last year’s trading volume (54,965 transactions) as of January-November, the highest since 2011 statistics were collected.




Lease contracts are classified into Jeonse, monthly rental, quasi-wolse, and quasi-jeonse. Monthly rent refers to a rental transaction in which the deposit is less than 12 months’ monthly rent, quasi-monthly rent refers to a transaction in which the deposit exceeds 12 to 240 months of monthly rent, and quasi-jeonse refers to a transaction in which the deposit exceeds 240 months’ monthly rent.

As of January to November, the total monthly rental transaction volume remained at 25,000 units from 2011 to 2012, then increased to 30,000 units from 2013 to 2014 and to 40,000 units from 2015 to 2019. After that, the number exceeded 50,000 for the first time last year, and the rate of increase accelerated this year.

The share of monthly rent has also increased. The proportion of monthly rental transactions among rental contracts signed between January and November this year reached 36.4%, exceeding the record high of 34.7% in 2016 during the same period. Jeonse prices have risen sharply since the enforcement of the new lease law last year, and the recent inflow of tenants into the monthly rental market is attributed to restrictions on jeonse loans due to measures to strengthen household debt management.

As the demand for rent increases, so does the price. According to the statistics of the Korea Real Estate Agency, the average monthly rent for an apartment in Seoul recorded 1234,000 won last month, up 10.2% from last October last year (1.12 million won). The average monthly rent nationwide was 802,000 won last month, a 12.5% ​​increase from a year ago (713,000 won).

The phenomenon in which landlords, who have increased the burden of ownership tax, such as general real estate tax (special property tax), are passing on the tax burden to tenants by turning the jeonse into monthly rent to increase the rent is also intensifying.

In the Gangnam area, where the tax burden is relatively high, the monthly rent in Songpa-gu (0.26% in August → 0.54% in September → 0.73% in October) and Seocho-gu (0.30% in August → 0.46% in September → 0.63% in October) was significantly higher. In the past month, it ranked first and second in the monthly rent increase rate.

Park Won-gap, senior real estate expert at KB Kookmin Bank, said, “In areas where high-priced housing is concentrated, monthly rent will accelerate with the idea of ​​receiving monthly rent and paying the monthly rent. Ham Young-jin, head of Big Data Lab, said, “If we see that there will be an increase in the holding tax next year, the number of transactions involving monthly rent, such as semi-jeonse, may increase as monthly rent is transferred to Cebu Dam.”

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