The jeonse rate of villas in Seoul has shown a continuous downward trend.
According to the Korea Real Estate Board's rental market siren on the 27th, the average jeonse rate for multi-family and multi-unit dwellings (villas) in the Seoul area was 65.4% in December last year, a decrease of 3.1 percentage points from the previous year (68.5%).
The jeonse rate for villas in the Seoul area rose to 78.6% in December 2022 but fell to 68.5% in December 2023.
The decrease in the jeonse rate for villas means that the possibility of losing the entire deposit is reduced, lowering the risk of jeonse fraud. Generally, if the jeonse rate exceeds 80%, it is classified as a high-risk group for empty jeonse. Jeonse fraud dwellings often have deposits higher than their sale prices.
In October last year, the jeonse rate recorded 64.5%, the lowest since the Korea Real Estate Board began disclosing jeonse rate calculations in August 2022.
The recent decline in the jeonse rate for villas is due to the sale prices rising at a greater rate than the jeonse prices. According to the Korea Real Estate Board, the jeonse price index for multi-family and multi-unit dwellings in Seoul rose for eight consecutive months from May to December last year. It increased by a cumulative 0.63% over the year, marking a turnaround after three years. Last year, the sale price index for multi-family and multi-unit dwellings rose by 1.03%, outpacing the increase in jeonse prices.
As of last month, the areas in Seoul with the highest jeonse rates were Gangseo District (74.3%), Yeongdeungpo District (73.7%), and Songpa District (73.0%). The areas with the lowest rates were Yongsan District (46.1%), Jung District (57.0%), and Nowon District (59.8%).
In Gyeonggi Province, the jeonse rate for villas fell from 69.4% in December 2023 to 67.5% in December last year. In Incheon, the jeonse rate rose from 76.7% to 80.2%.
Among local governments nationwide, the areas with a jeonse rate exceeding 80% include Gwangyang in South Jeolla Province (88.9%), Paju in Gyeonggi Province (86.1%), and Michuhol District (85.4%), Namdong District (85.1%), and Yeonsu District (84.4%) in Incheon.