Jeonse Shortage Reproduced in Non-Apartment Market... "Decrease in Jeonse and Wolse, Increase in Sales"

[Asia Economy Reporter Lim On-yu] Due to the implementation of the new Lease Protection Act and rising housing prices, the volume of jeonse and monthly rental transactions for non-apartment houses in Seoul has decreased, while sales transactions have increased.

According to an analysis of data from the Ministry of Land, Infrastructure and Transport's actual transaction disclosure system by real estate platform Dabang on the 3rd, the total number of jeonse and monthly rental transactions for detached (multi-family), row houses, and multi-unit houses in Seoul in December last year was 14,567. This figure rose to 19,968 in July last year, just before the new Lease Protection Act was implemented, but has since steadily declined, reaching the lowest point of the year in December.

By region, 16 out of Seoul's 25 districts saw a decrease. The largest declines were in Jung-gu (22.6%), Eunpyeong-gu (18.73%), and Geumcheon-gu (17.81%).

On the other hand, sales transactions in December last year totaled 6,209, a 23.6% increase compared to the previous month (5,022). Except for three districts, all of Seoul's 25 districts saw an increase, with Yeongdeungpo-gu (96.4%), Gangnam-gu (63.9%), Gwangjin-gu (61.7%), and Jongno-gu (61.0%) showing the largest growth rates.

The jeonse shortage and shift to sales seen in the apartment market after the new Lease Protection Act are also being replicated in the non-apartment market. A Dabang official analyzed, "This appears to be a phenomenon where young, non-homeowners, feeling anxious due to the continuous rise in housing prices, are moving into the villa market, which generally involves lower amounts."

In December last year, the average sales price of non-apartment housing varied depending on the area size, with 85㎡ (exclusive area) as the dividing point. The average sales price of studio units under 30㎡ was about 170.14 million KRW, rising only 0.92% compared to the previous month, while small to medium-sized units of 30?45㎡, 45?60㎡, and 60?85㎡ all saw slight declines. The price of multi-unit and row houses sized 85?100㎡, which can substitute apartments, averaged 449.97 million KRW, up 33.8% from the previous month. Larger units over 100㎡ also rose 15.7% during the same period.

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