A 28 yr old was not too long ago looking for a new one-room apartment close to work in Gwanghwamun, central Seoul. His family lives in Hwaseong, Gyeonggi, and he desired a place that may lessen the commute. That program fell through the 2nd he walked through often the doorway in the real house agency about Sept. 21.

Earlier this year, he had visited the true estate company in Dobong District, north Seoul. Lower back then, the jeonse value for a 26-square-meter (279. 9-square-foot) studio accommodation was about 90 million won ($76, 900). In his modern pay a visit to, that same room had been trading in regarding 129 million won, right up practically 45 per-cent.

Beneath Korea’s jeonse technique, the person positions down the large lump-sum first deposit in order to live throughout a property for a predetermined number of years. Often the deposit is refunded without curiosity at the ending of the deal.

“I was about to sign a contract early this year, nonetheless postponed it when the particular Covid-19 outbreak got critical. I'm really confused, ” he claimed. “I failed to take it seriously, nor did I think it could well be my difficulty whenever people referred rising genuine estate prices. I actually by no means imagined the price hop would affect one-room flats as well. ”

A lot of Koreans that can’t pay for jeonse deposits are now turning to facility lodging. The demand has already been pressing jeonse prices involving modest rooms through this roof.

According to real estate brokerage firm app Dabang, the typical jeonse price of some sort of one-room accommodation in Seoul smaller than 30 square metres was about 162. 5 mil gained in August, a 16 % increase via January.

Through the same period, the jeonse price connected with rooms sized involving forty five to 60 rectangle measures increased 7. six pct to 210 thousand won.

The increase is nearly all noticeable in Dobong Area, exactly where apartments have recently been relatively low-cost.

The average jeonse price of the residence smaller than 40 main square meters in Dobong Center was about 128. 3 mil won around August, a 57 percent increase compared to Present cards.

During the same time, the typical jeonse price involving the same-sized room inside Jungnang District, eastern Seoul increased 40 percent to 172. 3 million was the winner, while in Geumcheon Section, southern Seoul, the value rose 25 percent to 162. 7 million won. Around Guro District, western Seoul, the price jumped per day per cent to 139. a few thousand won.

The modern within jeonse prices connected with one-room apartments rentals may turn out to be due to often defense laws passed throughout This summer. The regulation factors landlords to replenish plans together with limits price goes up.

Likewise, more property owners are usually shifting from jeonse for you to each month rent. The number associated with jeonse dealings of this tiny lodging in June was only about 7, 558, a new 23 pct decline as opposed to a month ago.

Jeonse loans, which will be a relatively easy alternative for tenants, are a further driving force behind the price increases.

“As interest rates to get jeonse loans happen to be only regarding 2 percent a year, property owners who else want to raise the particular jeonse prices are even suggesting professional tenants borrow money from finance institutions, ” mentioned a real estate realtor in Jungnang District, far eastern Seoul.

Jeonse prices connected with officetels are also raising at a rapid rate.

Based to Sangga Jeongbo Analysis Center, officetel jeonse rates were 16. 61 , 000, 000 won each pyeong inside August, a 490, 000 won jump in per month. A pyeong is a few. 3 square meters.

“As 원룸 on loan products now furthermore applies in order to individuals with only one house, demand for jeonse possesses recently been spiking just lately, ” Shim Gyo-eon, a real real estate professor at Konkuk University, said. “In so that it will pet beds down the jeonse market, [the government] should approve deregulation with loans below 900 , 000, 000 won so that individuals that are really within need should buy houses. ”