If settling for a studio apartment is too expensive

A 28 yr old was just lately looking for the one-room apartment close to operate Gwanghwamun, central Seoul. His / her family lives in Hwaseong, Gyeonggi, and he wanted a place that would reduce the commute. That strategy fell through the 2nd he walked through typically the entry of the real house agency upon Sept. 19.

Earlier this year, this individual had visited the genuine estate organization in Dobong District, northern Seoul. Again then, the jeonse price tag for a 26-square-meter (279. 9-square-foot) studio accommodation involved 90 million won ($76, 900). In his current check out, that same place was trading on with regards to 129 million won, right up almost 45 per cent.

Beneath Korea’s jeonse system, the person places down some sort of large lump-sum first deposit throughout order to live in a property for any fixed number of years. Often the pay in is refunded with no fascination at the stop of the deal.

“I was about to sign an agreement early this year, nonetheless postponed it when often the Covid-19 outbreak got critical. I'm definitely confused, ” he stated. “I did not take it seriously, not did I think that could well be my challenge if people referred rising actual estate prices. I actually certainly not imagined the price hop would affect one-room rentals as well. ”

Many Koreans which can’t have the funds for jeonse deposits are today turning to studio room accommodations. The demand has recently been driving jeonse prices connected with small rooms through the particular roof.

According to real-estate broker app Dabang, the average jeonse price of some sort of one-room accommodation in Seoul smaller than 30 square metres was about 162. 5 , 000, 000 gained in August, some sort of 16 per cent increase by January.

Over the same interval, the jeonse price involving rooms sized in between 45 to 60 block yards increased 7. a few pct to 210 mil triumphed in.

The increase is virtually all evident in Dobong Center, just where apartments have also been somewhat cheap.

The normal jeonse price of a apartment smaller than 25 square meters in Dobong Center was about 128. 3 , 000, 000 won inside August, a 57 percent increase compared to Jan.

During the same period of time, the standard jeonse price connected with the same-sized room in Jungnang District, eastern Seoul increased forty percent to be able to 172. 3 million was the winner, while in Geumcheon Area, southern Seoul, the purchase price rose 25 percent to 162. 7 million won. Throughout Guro District, western Seoul, the price jumped twenty-four pct to 139. 6th mil won.

The recent rise in jeonse prices connected with one-room condominiums may get due to tenant defense laws passed around This summer. The legislation makes landlords to renew accords plus limits price boosts.

Furthermore, more householders are usually shifting from jeonse in order to regular monthly rent. The number involving jeonse orders of the tiny accommodations in September was only about eight, 558, a new 23 per cent decline when compared to in the past few months.

Jeonse loans, which can be some sort of relatively easy solution for tenants, are another driving force behind the purchase price increases.


“As interest costs to get jeonse loans will be only with regards to 2 pct a year, landlords that want to raise this jeonse prices are perhaps suggesting professional tenants borrow money from banking companies, ” stated a real estate real estate agent in Jungnang District, east Seoul.

Jeonse prices involving officetels are also boosting at a rapid rate.

Based to Sangga Jeongbo Study Center, officetel jeonse prices were fourteen. 61 zillion won for every pyeong in August, a 490, 500 won jump in 30 days. A pyeong is a few. 3 square meters.

“As 원룸 구하기 팁 on loans now likewise applies to be able to individuals with only one flat, demand for jeonse features been recently spiking not too long ago, ” Shim Gyo-eon, a true property professor at Konkuk College or university, said. “In so that it will amazing down the jeonse real estate market, [the government] should approve deregulation upon loans below 900 million won so that men and women who are really inside need should purchase houses. ”