SURGE IN APARTMENT LEASE PRICES

입력 2021.09.23 (15:09) 수정 2021.09.23 (16:46)

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[Anchor Lead]

Apartment lease prices are surging in Korea ahead of the autumn moving season. With more restrictions likely to be imposed on housing loans, apartments for rent could be in short supply again like last fall.

[Pkg]

Residents of this newly built apartment complex in Seoul are set to move in about two months from now. Apartment rent and jeonse lease prices usually go down when there are many available units, but this year the situation is different.

[Soundbite] Park Eon-tae(Realtor) : "Potential tenants balk at signing contracts because the Jeonse lease prices are higher than they thought."

In the second week of September, jeonse lease prices in Dongdaemun-gu District of Seoul rose 0.12 percent, surging 2.67 percent since the start of the year. It already surpassed the 1.75 percent surge recorded during the same period last year. The jeonse lease prices in the capital spiked 3.57 percent in 2021. With few units available and the continuing hike in prices, the number of transactions plummeted. Last month, some 12,000 apartment rental and jeonse lease transactions were reported in Seoul, one thousand fewer than last September, when jeonse lease apartments were in short supply. Meanwhile, the number of half-jeonse lease transactions, requiring a smaller deposit with a monthly rent, now account for nearly 40 percent. In fall of 2020, the government pledged to supply some 22,000 public housing units to alleviate the jeonse lease crisis. But only 8,000, or 37 percent of the promised units have been secured so far. Public apartments for jeonse lease are provided at 80-90 percent of the market price for up to six years. But despite the high demand, securing them remains difficult.

[Soundbite] Lim Byung-chul(Real Estate 114) : "As demand for apartments is rising ahead of the autumn moving season, the Jeonse lease market could become more shaky after Chuseok."

Rather than devising short-term measures, the government vowed to outline more fundamental solutions for stabilizing the housing rent and jeonse lease market at the end of the year.

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  • SURGE IN APARTMENT LEASE PRICES
    • 입력 2021-09-23 15:09:15
    • 수정2021-09-23 16:46:33
    News Today
[Anchor Lead]

Apartment lease prices are surging in Korea ahead of the autumn moving season. With more restrictions likely to be imposed on housing loans, apartments for rent could be in short supply again like last fall.

[Pkg]

Residents of this newly built apartment complex in Seoul are set to move in about two months from now. Apartment rent and jeonse lease prices usually go down when there are many available units, but this year the situation is different.

[Soundbite] Park Eon-tae(Realtor) : "Potential tenants balk at signing contracts because the Jeonse lease prices are higher than they thought."

In the second week of September, jeonse lease prices in Dongdaemun-gu District of Seoul rose 0.12 percent, surging 2.67 percent since the start of the year. It already surpassed the 1.75 percent surge recorded during the same period last year. The jeonse lease prices in the capital spiked 3.57 percent in 2021. With few units available and the continuing hike in prices, the number of transactions plummeted. Last month, some 12,000 apartment rental and jeonse lease transactions were reported in Seoul, one thousand fewer than last September, when jeonse lease apartments were in short supply. Meanwhile, the number of half-jeonse lease transactions, requiring a smaller deposit with a monthly rent, now account for nearly 40 percent. In fall of 2020, the government pledged to supply some 22,000 public housing units to alleviate the jeonse lease crisis. But only 8,000, or 37 percent of the promised units have been secured so far. Public apartments for jeonse lease are provided at 80-90 percent of the market price for up to six years. But despite the high demand, securing them remains difficult.

[Soundbite] Lim Byung-chul(Real Estate 114) : "As demand for apartments is rising ahead of the autumn moving season, the Jeonse lease market could become more shaky after Chuseok."

Rather than devising short-term measures, the government vowed to outline more fundamental solutions for stabilizing the housing rent and jeonse lease market at the end of the year.

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