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Whenever settling for a studio apartment is too expensive

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A 28 year old was just lately looking for a new one-room apartment close to work in Gwanghwamun, central Seoul. Their family lives in Hwaseong, Gyeonggi, and he required a place that could lessen the commute. That approach fell through the next this individual walked through often the front door with the real estate agency with Sept. 21.

Earlier this year, he had visited the true estate agency in Dobong District, northerly Seoul. Back then, the jeonse price tag for a 26-square-meter (279. 9-square-foot) studio accommodation involved 90 million won ($76, 900). In his latest take a look at, that same space was initially trading at regarding 145 million won, upwards virtually 45 per cent.

Underneath Korea’s jeonse system, some sort of person sets down a good large lump-sum pay in in order to live throughout a property for any resolved number of years. Often the deposit is refunded with out desire in the end of the deal.

“I was about to sign an agreement early this year, but delayed it when often the Covid-19 pandemic got serious. I'm actually confused, ” he stated. “I didn't take it seriously, nor did I think it would be my issue whenever people brought up rising actual estate prices. My partner and i never ever imagined the price leap would affect one-room condominiums as well. ”

A lot of Koreans which can’t pay for jeonse deposits are now turning to studio room rooms. The demand has already been forcing jeonse prices connected with tiny rooms through the roof.

According to real-estate broker app Dabang, the standard jeonse price of a one-room accommodation in Seoul less space-consuming than 30 square yards involved 162. 5 mil triumphed in in August, a 16 pct increase from January.

Over the same interval, the jeonse price associated with rooms sized involving fortyfive to 60 rectangle meters increased 7. six percent to 210 , 000, 000 triumphed in.

The increase is nearly all noticeable in Dobong Center, where apartments have already been somewhat low-cost.

The regular jeonse price of the house smaller than 30 rectangular meters in Dobong Section was about 128. 3 million won around August, a 57 pct increase compared to Economy is shown.

During the same time period, the regular jeonse price involving the same-sized room inside Jungnang District, eastern Seoul increased 45 percent to 172. 2 million won, while in Geumcheon Section, southern Seoul, the price increased 25 percent to 162. 7 million won. Inside Guro District, western Seoul, the price soared twenty four per-cent to 139. 6th thousand won.

원룸 in jeonse prices associated with one-room rentals may turn out to be due to commonly security laws passed around September. The laws causes homeowners to restore agreements in addition to limits price rises.

Furthermore, more property owners can be transferring from jeonse to each month rent. The number connected with jeonse purchases of the particular tiny rooms in Aug was only about 6, 558, the 23 per cent decline in contrast to in the past few months.

Jeonse loans, which are usually some sort of relatively easy alternative for tenants, are usually one other driving force behind the cost increases.

“As interest fees intended for jeonse loans are only regarding 2 pct a year, landlords that want to raise typically the jeonse prices are also suggesting professional tenants borrow dollars from finance institutions, ” said a real estate broker in Jungnang District, far eastern Seoul.

Jeonse prices of officetels are also increasing at a rapid rate.


Regarding to Sangga Jeongbo Exploration Center, officetel jeonse rates were 16. 61 , 000, 000 won each pyeong within August, a 490, 000 won jump in a month. A pyeong is several. 3 square meters.

“As government regulation on loans now likewise applies for you to people with only one condo, demand for jeonse features been recently spiking not too long ago, ” Shim Gyo-eon, an actual house professor at Konkuk University, said. “In so that it will pet beds down the jeonse real estate market, [the government] should approve deregulation upon loans below 900 zillion won so that individuals which are really inside need can find houses. ”
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on Oct 15, 20