The Residential Lease Protection Act, the so-called Lease 3 Act, will be in effect tomorrow (31st), marking the one-year anniversary of its enforcement.
The key to this is the right to apply for contract renewal, which allows one more extension of the jeonse contract, unless the landlord lives in person or there is no special disqualification from the lessee.
In addition, the 3rd lease law was completed with the implementation of the monthly rent report system from last month.
The goal was to stabilize the housing of the common people while balancing the relationship between the rights of the landlord and the tenant.
What will the results be after a year?
First, byun Jin-seok.
This is an apartment complex in Seodaemun-gu, Seoul.
Earlier this month, two houses of the same area made a worldwide contract.
The Jeonse price of one house was 535 million won, and the house contracted four days later was 800 million won, which was almost 300 million won more expensive.
The cheaper one was a renewal contract subject to the lease law, and the more expensive one was a new contract.
This is the so-called ‘double price’ phenomenon caused by the difference between the renewal contract in which the existing tenant lives as is and the new contract in which the new tenant moves in.
[김지선/공인중개사 : “(예를 들어)내가 6억 원에 (전세 세입자를) 받았어요. 2년 후면 3천만 원밖에 못 올린다 말이에요. 어차피 많이 못 올릴거 새로 계약하면서 많이 올려버리는 거지. 그래서 최소 8억 원이 되어버린 거죠.”]
The contrast between the one-year lease law enforcement is revealed in this ‘double price’.
First of all, the government explained that the Jeonse renewal rate has risen by 20%p to exceed 77%.
It is analyzed that this has led to positive effects, such as increasing the average length of residence and limiting the range of rent increases.
According to the description, tenants in this range have been able to continue living with relatively low jeonse payments despite the recent high house prices.
The problem is the remaining 23% that did not renew and came to market.
I have to sign a new contract, but considering that I will use the renewal right once and live for 4 years, the landlords charge a high price from the start.
This is the reason for the so-called ‘double price’ that you saw earlier.
This double price structure in the jeonse market leads to an overall price increase.
One year before the lease law was enforced, the median Jeonse price for an apartment in Seoul was 460 million won.
After three months of implementation, it exceeded KRW 500 million, and since then it has continued to rise, exceeding KRW 600 million in March of this year, and now it is around KRW 620 million.
The rate of increase is also high.
The rate of increase in apartment rental prices in Seoul, which was at the level of 0.01~0.05% on a weekly basis, continued to remain in the 0.1% range after the enforcement of the Lease Act.
In particular, the increase this week was 0.16%.
This is the highest level in a year.
There is also a forecast that, when the moving season is in full swing this fall, new contracts will come out again and the jeonse market will become unstable.
What are some of the ways to preserve the advantages of the 3 rental laws and minimize the side effects?
Reporter Hyo-jin Heo continues to report.
Seeing Bundang and Gwacheon… “Increase supply and loosen regulations”
A new apartment complex stands high next to the apartment construction site.
Move-in started in May, and an additional 3,800 households are expected to move in by the end of the year.
As a result of this large-scale supply, the Jeonse price in Bundang-gu, Gyeonggi-do fell 0.17% from the previous week as of the fourth week of this month.
[정환철/공인중개사 : “공급은 아주 생각보다 (인근) 시장에 많이 풀리고, 수요는 계약갱신청구권으로 현격하게 줄어들고 보증금이 떨어질 수밖에 없는 현상입니다.”]
Jeonse price trends in Gwacheon, Gyeonggi-do are also unusual in the current situation.
It has fallen more than 2% this year through the month of last month.
The reason is also the large supply.
About 3,400 households started moving in in just two months from December last year.
Some places are also affected by deregulation.
As a representative reconstruction complex in Gangnam, Seoul, there was no regulation that allowed people to live for two years to receive a sale right, so the number of jeonse sales doubled within a week.
[이후정/공인중개사 : “처음부터 여기 오고 싶어서 살기 위해서 왔던 분들이 아닌 (집주인) 분들은 오신 지 3개월밖에 안됐고, 6개월밖에 안 된 분들도 지금 매물을 내놓고…”]
The solution is to mobilize a variety of methods to provide sufficient and steady supply between the public and private sectors.
[이은형/대한건설정책연구원 책임연구원 : “매매시장과 전세시장은 서로 연계돼 있습니다. 전세난을 해결하기 위해서는 현실적으로는 민간의 정비사업 활성화를 유도하면서 정부가 계획한 주택 공급을 차질없이 추진하는 것이 중요합니다.”]
The double price phenomenon can only be alleviated when the number of tenants increases and the trading market stabilizes.
This is Hyojin Heo from KBS News.
Cinematographer: Kim Jun-woo, Kim Yeon-su, Jo Eun-kyung, Shim Gyu-il, Video Editing: Kim Seon-young, Lee Jae-yeon, Graphics: Kim Ji-hoon, Kim Seok-hoon, Han Jong-heon