HARDSHIPS IN RENTING APARTMENTS

[Anchor Lead]

It's been more than two months since the new real estate law aimed at protecting tenants took effect. But the number of apartments available for rent has plummeted recently. As a result, the number of apartment rental transactions fell to just 50 percent of the number recorded last year.

[Pkg]

People stand in a long line in the hallway of an apartment building.They flocked here upon hearing the news that an apartment unit was available for a lower rent compared to the market price. After touring the property, a lucky tenant was eventually picked through a random draw. There are only one or two apartments of each size available for rent in this residential complex.

[Soundbite] (REALTOR(VOICE ALTERED)) : "We asked people who were serious about the rental to show up. Five people came and they determined priority through a random draw."

The number of apartment units for rent in this complex of some 4400 households can be counted on one hand. Apartments for rents are in short supply in areas with good schools and accessible public transportation. The situation is particularly tough for tenants in areas where property owners are required to live in their apartments for at least two years in order to earn the right to move in when their buildings are reconstructed.

[Soundbite] TENANT((VOICE ALTERED)) : "There are one or two units for rent for around 900 million won each. Both of my children attend a high school in this area. It would be difficult to transfer them to another neighborhood."

With demand surpassing supply, the number of apartment rental transactions continues to dwindle. Last month some 5200 apartment rental transactions were recorded in Seoul, half of the number recorded a year ago. The situation remains similar this month as well.

[Soundbite] (REALTOR(VOICE ALTERED)) : "Nobody wants to move. There are few available apartments, and the rent is too high now."

According to Kookmin Bank, the supply and demand index in the apartment rent market surpassed 190 last week, approaching an all-time high. This means the demand for apartment rentals significantly exceeds supply.