[2020 National Audit] Seoul Jeonse Renewal Rate Surges 8.8%p in One Month... "Increase in Housing Stability"

Jinseongjun, Democratic Party Lawmaker: "The Effects of the Lease 3 Laws Are Taking Full Effect... We Will Strive to Stabilize New Jeonse Prices"

[Image source=Yonhap News]

[Asia Economy Reporter Wondara] The renewal rate of Jeonse leases in Seoul surged by 8.8 percentage points compared to the previous month in September.

According to the 'Number of Guarantee Renewals by Housing and Urban Guarantee Corporation, Korea Housing Finance Corporation, and SGI Seoul Guarantee' submitted by the Ministry of Land, Infrastructure and Transport to Jin Seong-jun, a member of the National Assembly Land, Infrastructure and Transport Committee from the Democratic Party of Korea, the Jeonse renewal rate in Seoul in September was 60.4%, an increase of 8.8 percentage points from 51.6% in August. This is 5.4 percentage points higher than the national average renewal rate of 55% from January to August. The nationwide public guarantee renewal rate also increased from 50.3% to 59.3% during the same period.

Public guarantees for Jeonse deposits are insurance policies where the Housing and Urban Guarantee Corporation (HUG) and Korea Housing Finance Corporation take responsibility for guaranteeing tenants' Jeonse loans from financial institutions. Jin Seong-jun's office explained, "Since the introduction of the government's three lease laws, the rate of extending public guarantees for Jeonse deposits has significantly increased," adding, "This means that cases of tenants extending their Jeonse lease periods after the contract period has expired due to the introduction of the contract renewal request right are increasing."

Meanwhile, according to the weekly price trends in Seoul confirmed by Jin from the Korea Real Estate Board, the housing price increase rate in Seoul remained unchanged at 0.0%, but in Gangnam-gu, the price increase rate fell by 0.01 percentage points.

Jin said, "The public guarantee renewal rate for Jeonse prices, which was only in the low 50% range in August, surged by nearly 10%, indicating that the effect of the three lease laws has taken full effect and tenants' housing stability has improved," adding, "As the housing price increase rate in Gangnam has stopped rising and even shows signs of decline, the government and ruling party will actively work to stabilize new Jeonse prices early."

This content was produced with the assistance of AI translation services.