A 28 year old was lately looking for a good one-room apartment close to operate Gwanghwamun, central Seoul. His family lives in Hwaseong, Gyeonggi, and he wanted a place that may decrease the commute. That system fell through the subsequent he walked through the entrance from the real estate agency with Sept. 21.

Earlier this year, he / she had visited the real estate agency in Dobong District, northerly Seoul. Once again then, the jeonse selling price for a 26-square-meter (279. 9-square-foot) studio accommodation involved 90 million won ($76, 900). In his current check out, that same room was initially trading in concerning 129 million won, up nearly 45 pct.

Below Korea’s jeonse program, the person places down a new large lump-sum first deposit around order to live throughout a property for any resolved number of years. This put in is refunded devoid of curiosity at the stop of the agreement.

“I was about to sign a contract early this year, yet postponed it when often the Covid-19 outbreak got severe. I'm actually confused, ” he explained. “I didn't take it seriously, nor did I think this might be my trouble as soon as people talked about rising authentic estate prices. We in no way imagined the price hop would affect one-room condominiums as well. ”

Many Koreans who can’t pay for jeonse deposits are now turning to studio lodging. The demand has also been moving jeonse prices of modest rooms through typically the roof.

According to real estate broker agent app Dabang, the common jeonse price of the one-room accommodation in Seoul smaller than 30 square metres was about 162. 5 thousand gained in August, some sort of 16 % increase from January.

Throughout 오피스텔 원룸 , the jeonse price connected with rooms sized concerning 45 to 60 square yards increased 7. six pct to 210 thousand received.

The increase is almost all visible in Dobong Center, where apartments have recently been somewhat low-priced.

The normal jeonse price of a great residence smaller than thirty main market square meters in Dobong District was about 128. 3 mil won inside August, a 57 % increase compared to January.

During the same period, the standard jeonse price connected with the same-sized room in Jungnang Area, eastern Seoul increased 40 percent for you to 172. 3 million won, while in Geumcheon District, southern Seoul, the purchase price went up by 25 percent to 162. 7 million won. In Guro District, western Seoul, the price rocketed twenty four per-cent to 139. a few million won.

The modern rise in jeonse prices connected with one-room condominiums may become due to renter security laws passed within July. The laws causes property owners to invigorate plans plus limits price goes up.

Likewise, more home owners will be transferring from jeonse to be able to every month rent. The number of jeonse purchases of this tiny accommodations in June was only about almost eight, 558, a 23 % decline in contrast to a month ago.

Jeonse loans, which are usually a good relatively easy choice for tenants, can be a further driving force behind the price increases.

“As interest rates for jeonse loans are only about 2 per-cent a year, homeowners that want to raise the particular jeonse prices are actually suggesting tenants borrow cash from bankers, ” mentioned a real estate agent in Jungnang District, eastern Seoul.

Jeonse prices involving officetels are also boosting with a rapid rate.

Matching to Sangga Jeongbo Analysis Center, officetel jeonse prices were 14. 61 thousand won each pyeong around August, a 490, 1000 won jump in 30 days. A pyeong is three or more. 3 square meters.

“As government regulation on money now as well applies to be able to people who have only one residence, demand for jeonse offers been recently spiking just lately, ” Shim Gyo-eon, a genuine property professor at Konkuk University, said. “In order to pet beds down the jeonse real estate market, [the government] should approve deregulation in loans below 900 , 000, 000 won so that folks who also are really throughout need can find houses. ”