This year, while apartment jeonse and monthly rent transactions have declined, transactions for non-apartment homes such as villas have increased. With a shortage of jeonse listings, rising prices, and the burden of lending curbs, tenants are moving to relatively cheaper non-apartment options.
According to housing statistics from the Ministry of Land, Infrastructure and Transport on the 5th, nationwide dwellings jeonse and monthly rent transaction volume from January to May was 1,230,614, up 2.6% from the same period a year earlier.
By dwelling type, the trends diverged. Apartment jeonse and monthly rent transaction volume was 528,858, down 7.2% on-year, while transactions for non-apartments such as row houses, multiplex units, and detached houses rose 11.5% to 701,756.
In Seoul as well, apartment jeonse and monthly rent transactions fell 6.5% from 128,051 to 119,722. In contrast, non-apartment jeonse and monthly rent transactions increased 6.3% from 244,369 to 259,853.
The main reason cited for the decline in apartment jeonse and monthly rent transactions is a shortage of jeonse listings. With fewer new move-ins and the expansion of land transaction permit zones, along with sales by owners of multiple homes, analysts said fewer new jeonse listings are coming to market.
Seoul apartment jeonse and monthly rent listings are also on the decline. As of the 5th under Asil's tally, Seoul apartment jeonse and monthly rent listings totaled 37,551, down 14.5% from two years ago.
Price burdens have also increased. From January to May, the average deposit for new apartment jeonse in Seoul was 658.75 million won, up 19.1% from 553.77 million won two years ago. Over the same period, the average new monthly rent rose 25% from 1,096,000 won to 1,373,000 won.
In contrast, the average deposit for new jeonse in row houses and multiplex units was 237.64 million won this year, little changed from 228 million won two years ago. This has increased the incentive for tenants pushed out of apartment jeonse to move to non-apartments.
The shift to monthly rent is also accelerating. From January to May, the share of monthly rent in Seoul apartments was 51.3%, up 7.3 percentage points from 44.0% in the same period last year, surpassing half for the first time. The share of monthly rent in non-apartments also rose to 78.4%.
The share of renewal contracts also increased. From January to May, the share of jeonse and monthly rent renewal contracts for Seoul apartments was 46.0%, up from 40.5% last year, and the share of jeonse renewal contracts accounted for a majority at 51.3%.