Number of Confirmed Date Cases Surges This Year... Rent Demand Rises and Prices Soar

On the 12th, South Korea Court Registry Information Plaza
Number of Confirmed Dates Increased by 440,000 Compared to Last Year
Other Years Showed Around 100,000 Increase
Monthly Rent Increase Due to Interest Rate Rise
Demand Surges, Monthly Rent Prices Reach All-Time High

[Asia Economy Reporter Hwang Seoyul] As buying sentiment weakens and demand for rental housing surges, the number of confirmed dates for jeonse and monthly rent contracts has sharply increased this year. In particular, with the number of monthly rent contracts rising significantly compared to the previous year, the monthly rent index recorded an all-time high.

According to the Korea Court Registry Information Plaza as of the 12th, the total number of confirmed dates for nationwide jeonse and monthly rent contracts granted from January to November this year was 2,487,434. This represents a 21.51% increase from 2,047,062 during the same period last year. A confirmed date refers to the date stamped on the contract by the court or community service center to certify the date the housing lease contract was signed.

With real estate price decline forecasts dampening buying sentiment and increasing rental demand, the number of confirmed dates for jeonse and monthly rent contracts rose significantly compared to the previous year. The increase in confirmed dates this year compared to last year was 440,372. However, in other years, the increase in confirmed dates compared to the previous year was only around 100,000. In 2021 (2,047,062 contracts), the increase was 61,796; in 2020 (1,985,266 contracts), 129,059; and in 2019 (1,856,207 contracts), 89,426.

Especially with rising interest rates on jeonse loans, the number of confirmed dates for monthly rent contracts surged. From January to November this year, the total number of confirmed dates for jeonse contracts was 1,203,605, while monthly rent contracts reached 1,283,829, reversing the previous trend where jeonse contracts were more numerous. Compared to last year, the increase in confirmed dates for monthly rent was 346,577, while for jeonse it was 48,795.

As rental demand concentrated on monthly rent, monthly rent prices hit an all-time high. The Korea Real Estate Agency’s comprehensive housing monthly rent integrated price index reached 103 in October, showing a steady upward trend this year. In contrast, the jeonse price index has declined for four consecutive months since June (103.2) due to increased move-in supply and the trend toward monthly rent, recording 101.4.

Experts expect the upward trend in monthly rent prices driven by increased demand to continue into next year. The Korea Housing Industry Research Institute (K-HIRI) forecasted in its ‘2023 Housing Market Outlook’ released yesterday that jeonse prices will fall by 4.0% by the end of next year compared to this year, while monthly rent will rise by 1.3%. Researcher Kwon Youngseon of K-HIRI said, "Since the base interest rate is expected to remain high, preference for monthly rent is likely to continue through next year," adding, "The rise in monthly rent prices is expected to ease once the base interest rate begins to be lowered."

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