36.4% of monthly rental rent
The average monthly rent is 123 million won… 10%↑ in one year
Among apartment rentals in Seoul, the monthly rental volume recorded the highest ever. The rate of ‘settlement to monthly rent’ seems to be accelerating, with the proportion of monthly rent in the total rental transaction reaching an all-time high.
According to the Seoul Real Estate Information Plaza on the 21st, the number of apartment rental transactions in Seoul including the net monthly rent and the reverse tax, which pays at least a portion of the monthly rent, totaled 56,169 this year until the previous day. Even with ten days left in this month, the monthly rental transaction volume (54,965 cases) from January to November last year was not only the highest recorded in January to November since 2011 related statistics were compiled.
The share of monthly rent in the total rental transaction is also increasing rapidly. As of the previous day, the proportion of monthly rental transactions between January and November this year stood at 36.4%, the highest ever. The previous high in January-November was 34.7% of 2016.
It is analyzed that the reason for the sharp increase in monthly rental transactions in Seoul is that the price of jeonse has soared since the enforcement of the new lease law in July last year (the maximum limit on cheonsei and the right to renew the contract), and a large number of tenants who had difficulty finding jeonse properties flowed into the monthly rental market. In the case of Geumcheon-gu, the monthly apartment rental transaction volume this year was 2018, more than four times higher than the transaction volume up to November last year (504). As Geumcheon-gu has the lowest average apartment price in Seoul, it is known that many low-income and middle-class people who are sensitive to housing costs live there.
The government’s policy to strengthen regulations on multi-homeowners also had an impact. There has been an increasing number of cases where landlords, who have been burdened with property taxes such as comprehensive real estate tax and property tax, are passing on the tax burden to tenants by turning the monthly rent to cover the tax.
As more and more tenants are looking for monthly rent instead of jeonse due to ‘crying and eating mustard’, the monthly rent that continues to rise is also a burden. According to the Korea Real Estate Agency, the average monthly rent for an apartment in Seoul was 1234,000 won last month, up 10.2% in a year.
Park Won-gap, senior real estate expert at KB Kookmin Bank, predicted that “in an area where high-priced housing is concentrated, the monthly rent will accelerate with the idea of paying the monthly rent and paying the specific tax.”
[ⓒ 세계일보 & Segye.com, 무단전재 및 재배포 금지]