Oh Se-hoon, the Seoul mayor, said on the 3rd, "Seoul's jeonsei and monthly rent market is becoming increasingly serious," adding, "It is time for the government to bring back the practical solution of revitalizing registered rentals."
The mayor said this in a post on social media (SNS) titled "We cannot stand by as a 'jeonsei and monthly rent catastrophe' approaches."
The mayor said, "In the field, jeonsei and monthly rent listings are disappearing so rapidly that people are saying 'it's not just reduced, it has been wiped out,'" adding, "In fact, Seoul's jeonsei listings fell by more than 15% in a month, and analysis shows they have decreased by more than 40% from a year earlier."
He also shared analysis results from the Seoul Real Estate Policy Development Center. The mayor said, "Compared with last week, this week's jeonsei listings fell 5.9%, and monthly rent listings fell 4.9%," adding, "Even in large complexes with more than 1,000 households, places with one or fewer jeonsei listings are increasing."
The mayor also said, "Ordinary people, worried they may not be able to find a place to live even if jeonsei deposits rise, are renewing their existing jeonsei contracts, and the erosion of new jeonsei supply is accelerating," adding, "The problem is that in this situation, 34,000 households this year and 64,000 households next year are set to see their jeonsei renewal rights expire and must find new homes."
He said the measures currently put forward by the Seoul city government alone are not enough to meet this demand. The mayor said, "On the 31st of last month, the Seoul city government announced a comprehensive plan to stabilize housing for citizens without homes," adding, "We will supply 123,000 public rentals, including 6,500 'Right-away Home' units, and measures to fill the gaps in housing stability for ordinary people include ▲ support for jeonsei security deposits ▲ support for jeonsei loan interest ▲ monthly rent housing cost subsidies ▲ consulting and on-site accompaniment services for safe jeonsei and monthly rent contracts."
He continued, "But this alone is not enough," adding, "The government must now change the direction of its policy. It must clearly distinguish holdings for speculative purposes from holdings that perform a rental supply function."
The mayor said, "In Seoul, where one out of two citizens is a jeonsei or monthly rent tenant household, securing rental supply is as urgent a task as supplying new housing," adding, "It is time for the government to bring back the practical solution of revitalizing registered rentals. Compared with general rentals, registered rentals have rents that are 1.8 times lower, and tenants can live there for up to 10 years, which can protect renters. However, even 'registered rental housing' will see its mandatory rental period end this year and next."
He continued, "Even now, the government must face the voices on the ground and rationalize regulations," adding, "If necessary, the Seoul city government will also put our heads together. The Seoul city government is ready."