Since the start of the year, 1 out of every 2 Seoul apartment jeonse and monthly rent transaction has been a renewal contract.
According to the actual transaction price system of the Ministry of Land, Infrastructure and Transport on the 23rd, the share of renewal contracts among Seoul apartment jeonse and monthly rent contracts signed from Jan. 1 to this day was 48.2%. That is up 7 percentage points from last year's average renewal share of 41.2%. In particular, this month renewal contracts accounted for 51.8%, outnumbering new contracts.
The share of renewal contracts for Seoul apartment jeonse and monthly rent was 41.93% in October last year, when all of Seoul was designated as a permit zone, and 39.84% in November. However, it began to rise to 43.22% in December, increased to 45.9% in January this year and 49% in February, and surpassed 50% in March.
With jeonse prices higher than two years ago and a drop in new jeonse and monthly rent listings due to the impact of designating land transaction permit zones that require buyers to move in immediately, more tenants have been renewing and staying put. The government's strict lending curbs, which made jeonse loans harder to get, are also cited as a factor leading to renewals.
By district, Jungnang District had the highest share of renewal contracts this month at 70.5%. It was followed by Yeongdeungpo District (62.7%), Gangdong District (59.9%), Seongbuk District (59.5%), and Mapo District (57.9%). Gangnam District (55.8%) and Seocho·Songpa Districts (55.7%) also pushed the three Gangnam districts above 50%.
The share of exercising renewal rights fell somewhat. The share, which averaged 49.3% last year, declined to 42.8% in January–March this year. The drop in exercising renewal rights is leading to more monthly rent contracts. Based on Ministry of Land, Infrastructure and Transport (MOLIT) actual transaction statistics, the share of monthly rent for Seoul apartments, which averaged 43.2% last year, has risen to 47.9% this year. In particular, among new jeonse and monthly rent contracts, the share of monthly rent (including semi-jeonse) surged from 47.5% last year to 52.5% this year.