When settling for a studio apartment is too expensive
A 28 yr old was recently looking for a new one-room apartment close to operate Gwanghwamun, central Seoul. 4평 원룸 or her family lives in Hwaseong, Gyeonggi, and he wished a place that could decrease the commute. That program fell through the subsequent he walked through typically the entry on the real estate agency on Sept. 20.
Earlier this year, he or she had visited the true estate agency in Dobong District, northerly Seoul. Once again then, the jeonse price for a 26-square-meter (279. 9-square-foot) studio accommodation was about 90 million won ($76, 900). In his current visit, that same area was trading from regarding 135 million won, upwards practically 45 per-cent.
Below Korea’s jeonse method, a person puts down a large lump-sum down payment around order to live within a property for the fixed number of years. This pay in is refunded devoid of desire on the stop of the commitment.
“I was about to sign a contract early this year, nonetheless delayed it when this Covid-19 pandemic got significant. I'm definitely confused, ” he stated. “I did not take it seriously, or did I think this could well be my problem if people discussed rising real estate prices. We never ever imagined the price leap would affect one-room condominiums as well. ”
Numerous Koreans who else can’t manage jeonse deposits are presently turning to facility hotels. The demand has been pushing jeonse prices involving small rooms through this roof.
According to real-estate brokerage app Dabang, the average jeonse price of some sort of one-room accommodation in Seoul less space-consuming than 30 square yards was about 162. 5 zillion gained in August, the 16 per cent increase by January.
During the same period, the jeonse price of rooms sized between 45 to 60 courtyard meters increased 7. 6th per cent to 210 thousand triumphed in.
The increase is most visible in Dobong District, in which apartments have been recently relatively low-cost.
The typical jeonse price of an residence smaller than 40 main market square meters in Dobong Section was about 128. 3 , 000, 000 won inside August, a 57 % increase compared to Present cards.
During the same interval, the common jeonse price associated with the same-sized room inside Jungnang Section, eastern Seoul increased forty five percent for you to 172. two million was the winner, while in Geumcheon Area, southern Seoul, the retail price flower 25 percent to 162. 7 million won. Within Guro District, western Seoul, the price soared twenty four per cent to 139. six , 000, 000 won.
The current within jeonse prices connected with one-room flats may end up being due to tenant safeguard laws passed throughout September. The legislation pushes homeowners to renew plans together with limits price rises.
As well, more home owners happen to be transferring from jeonse in order to regular monthly rent. The number of jeonse deals of this tiny hotels in August was only about 8, 558, the 23 % decline when compared to a month ago.
Jeonse loans, which are the relatively easy selection for tenants, can be an additional driving force behind the retail price increases.
“As interest charges for jeonse loans are only concerning 2 percent a year, homeowners which want to raise the jeonse prices are perhaps suggesting prospects borrow cash from banking companies, ” mentioned a real estate agent in Jungnang District, asian Seoul.
Jeonse prices associated with officetels are also raising for a rapid rate.
Regarding to Sangga Jeongbo Exploration Center, officetel jeonse price ranges were 18. 61 , 000, 000 won for every pyeong throughout August, a 490, 1000 won jump in a month. A pyeong is 3. 3 square meters.
“As government regulation on business loans now in addition applies to be able to people with only one flat, demand for jeonse offers recently been spiking not too long ago, ” Shim Gyo-eon, a true residence professor at Konkuk College, said. “In so that it will interesting down the jeonse housing market, [the government] should approve deregulation with loans below 900 million won so that persons who are really throughout need can buy houses. ”