Jeonse of monthly rent proceeds rapidly
As the demand for jeonse shifted to monthly rent in the aftermath of rising interest rates, the monthly rent transaction volume exceeded the jeonse transaction volume in Seoul and Gyeonggi Province in October and November of last year.
According to real estate brokerage company Ziptos on the 3rd, from January to November of last year, the proportion of monthly rental transactions in Seoul and Gyeonggi Province was 48.9%, an increase of 5.7 percentage points from 43.2% in 2021. Compared to 2020 (38.4%), this is an increase of more than 10 percentage points. Looking at October and November alone last year, the monthly rent accounted for 50.4%, exceeding the jeonse share.
Last year, the share of monthly rent showed a steady increase by quarter: 48.7% in the first quarter (January to March), 47.9% in the second quarter, and 49.2% in the third quarter. Ziptos said, “Considering that there are many cases where monthly rents do not receive a fixed date compared to jeonse, the actual proportion of monthly rent transactions must have increased significantly.”
As the monthly rent of jeonse progressed, the average monthly rent per transaction in Seoul and Gyeonggi last year was 295,600 won, an increase of 23% from the previous year. On the other hand, the average rental deposit was 195.92 million won, down 3.5% from the previous year.
This phenomenon of monthly rent appears to be due to growing concerns about ‘canned jeonse’ as house prices fall in addition to rising interest rates on loans. In fact, as a result of Ziptos’ analysis of the actual transaction price of monthly rent for collective buildings (apartments, townhouses, multi-households, and officetels) in Gyeonggi-do, the average rental deposit in October and November of last year decreased by 10% compared to the second quarter of the same year, while the average monthly rent increased by 10%. appear. An official from Ziptos explained, “It seems that the can jeonse has become a social problem, and the monthly rent of the jeonse has progressed rapidly.”
Reporter Saesam Lee [email protected]