Last Year's Jeonse and Monthly Rent Transactions Hit 'Record High'... Increased by 300,000 Cases in 5 Years

▲ (Provided by Ministry of Land, Infrastructure and Transport)

[Asia Economy Reporter Lee Chun-hee] Last year, the volume of jeonse and wolse (monthly rent) transactions reached an all-time high since statistics began to be compiled. In particular, last month, the transaction volume jumped 25% compared to the 5-year average, indicating a pronounced tendency among demanders to prefer jeonse and wolse over purchasing.

The Ministry of Land, Infrastructure and Transport announced that the annual jeonse and wolse transaction volume based on confirmed date data last year was 1,954,464 cases, a 6.8% increase from 1,830,821 cases the previous year. Compared to the recent 5-year average of about 1.68 million cases, it rose by 16.1%.

This figure is the highest ever since related statistics began to be compiled in 2014. The annual jeonse and wolse transaction volume, which was 1,618,579 cases in 2014, increased by 335,885 cases last year, soaring 20.8%.

As of last month, the jeonse and wolse transaction volume was also 166,585 cases, up 16.5% from 142,990 cases in the same period last year, and soaring 24.8% compared to the 5-year average of about 133,000 cases. This is analyzed as an effect of the government's strong loan regulations, which shifted demanders from home purchases to jeonse and wolse.

Among last year's jeonse and wolse transactions, the share of jeonse was 59.9%, up 0.4 percentage points from 59.5% the previous year. The jeonse share, which was 56.7% in 2016, has continued to rise for four consecutive years since then.

By region, last year, the jeonse and wolse transaction volume in the metropolitan area was 1,293,679 cases, 15.5% higher than the 5-year average and 6.3% higher than the previous year. The increase in local areas was even greater, with 660,785 cases last year, up 17.5% compared to the 5-year average and 7.7% compared to the previous year.

By housing type, the rise in apartment transaction volume was remarkable. Last year, the apartment jeonse and wolse transaction volume was 937,424 cases, a 9.5% increase from the previous year. The transaction volume in December last year, recorded at 85,454 cases, also increased by 20.6%.