Increased Jeonse and Wolse Transactions Following January Real Estate Market Regulations

[Asia Economy Reporter Inho Yoo] Last month, the volume of jeonse and wolse transactions exceeded 170,000 cases.

It is analyzed that real demanders, feeling burdened due to the government's strong loan regulations and the continued rise in housing prices in Seoul and other metropolitan areas, have turned to jeonse and wolse conversions.

The Ministry of Land, Infrastructure and Transport announced on the 20th that the volume of jeonse and wolse transactions, based on confirmed date data last month, was 173,579 cases, an increase of 4.2% compared to 166,585 cases in the previous month. Compared to 168,781 cases in the same month last year and the recent 5-year average (136,805 cases), it increased by 2.8% and 26.9%, respectively.

Previously, last year's jeonse and wolse transaction volume recorded an all-time high of 1,954,464 cases since statistics began. The annual jeonse and wolse transaction volume, which was 1,618,579 cases in 2014, increased by 335,885 cases last year, rising 20.8%.

This trend has continued into this year, highlighting a tendency among demanders to prefer jeonse and wolse over purchasing. It is said that due to the government's strong loan regulations, the demand base is shifting from home purchases to jeonse and wolse.

Last month's jeonse transaction volume was 107,089 cases, up 5.9% from the previous month. The jeonse share reached 61.7%. During the same period, wolse transactions increased by 1.6% to 66,490 cases.

By region, last year's jeonse and wolse transaction volume in the metropolitan area was 113,942 cases, up 5.6% from the previous month. In provincial areas, it was 59,637 cases, up 1.7% from the previous month but down 0.4% compared to the same month last year.

By housing type, apartment jeonse and wolse transactions were 85,644 cases, increasing 0.2% from the previous month and 6.2% compared to the same month last year. Non-apartment transactions increased 8.4% from the previous month but decreased 0.3% compared to the same month last year.