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A 28 yr old was lately looking for some sort of one-room apartment close to work in Gwanghwamun, central Seoul. The family lives in Hwaseong, Gyeonggi, and he required a place that would lower the commute. That approach fell through the 2nd this individual walked through the doorway from the real residence agency about Sept. nineteen.

Earlier this year, he had visited the actual estate business in Dobong District, upper Seoul. Back then, the jeonse selling price for a 26-square-meter (279. 9-square-foot) studio accommodation involved 90 million won ($76, 900). In his recent visit, that same space was trading with concerning 135 million won, right up virtually 45 per-cent.

Under Korea’s jeonse method, some sort of person places down a new large lump-sum first deposit around order to live inside a property to get a resolved number of years. This first deposit is refunded without having curiosity at the finish of the deal.

원룸 인테리어 was about to sign a contract early this year, nevertheless delayed it when the particular Covid-19 pandemic got serious. I'm really confused, ” he mentioned. “I did not take it seriously, nor did I think that might be my problem when people discussed rising actual estate prices. We never ever imagined the price get would affect one-room apartments rentals as well. ”

Numerous Koreans who also can’t have the funds for jeonse deposits are presently turning to business rooms. The demand has recently been driving jeonse prices connected with tiny rooms through often the roof.

According to real estate brokerage house app Dabang, the regular jeonse price of the one-room accommodation in Seoul less space-consuming than 30 square yards was about 162. 5 , 000, 000 won in August, some sort of 16 % increase through January.

Over the same period, the jeonse price of rooms sized concerning forty-five to 60 pillow measures increased 7. six % to 210 , 000, 000 received.

The increase is almost all visible in Dobong Area, just where apartments have recently been comparatively low-priced.

The average jeonse price of an flat smaller than 30 square meters in Dobong Region was about 128. 3 mil won throughout August, a 57 pct increase compared to Present cards.

During the same period, the typical jeonse price involving the same-sized room in Jungnang Center, eastern Seoul increased fourty percent for you to 172. 2 million was the winner, while in Geumcheon District, southern Seoul, the retail price went up by 25 percent to 162. 7 million won. Within Guro District, western Seoul, the price jumped twenty four percent to 139. 6th mil won.

The current within jeonse prices regarding one-room rentals may turn out to be due to commonly safety laws passed in July. The law causes homeowners to restore plans plus limits price rises.

As well, more house owners happen to be changing from jeonse to be able to each month rent. The number connected with jeonse deals of the tiny lodging in June was only about 6, 558, a 23 % decline in comparison to last month.

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

“As interest fees to get jeonse loans are usually only with regards to 2 % a year, landlords who want to raise typically the jeonse prices are even suggesting prospects borrow money from finance institutions, ” claimed a real estate broker in Jungnang District, asian Seoul.

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

Regarding to Sangga Jeongbo Research Center, officetel jeonse costs were 13. 61 million won for every pyeong in August, a 490, 500 won jump in 30 days. A pyeong is 3 or more. 3 square meters.

“As government regulation on loans now as well applies for you to individuals with only one condo, demand for jeonse offers recently been spiking recently, ” Shim Gyo-eon, a true residence professor at Konkuk University or college, said. “In so that it will interesting down the jeonse housing market, [the government] should approve deregulation in loans below 900 mil won so that men and women who also are really inside need should buy houses. ”