Three Months of New Lease Law... 6 out of 10 Tenants Say "It Does Not Help"

Both Landlords and Tenants Prefer 'Jeonse' Transactions
"Concerns Over Shortage of Jeonse Properties"

[Asia Economy Reporter Onyu Lim] As the new Lease Protection Act, including the right to request contract renewal and the rent ceiling system for Jeonse and monthly rent, enters its fourth month of enforcement, more than 60% of people surveyed evaluated it as "not helpful."

According to Zigbang on the 9th, a survey related to the three lease laws was conducted with 1,154 users, and 64.3% responded that it was "not helpful" for Jeonse and monthly rent transactions. Only 14.9% answered that it was "helpful."

Among landlords or owner-occupiers, the percentage of respondents who said it was not helpful was 75.2%. Although lower than landlords, tenants also showed a high rate of negative responses. 67.9% of Jeonse tenants and 54% of monthly rent tenants answered that it was not helpful.

By age group, those in their 50s and 60s or older, and by household size, 2-3 person households and households with 4 or more people showed more responses that it was not helpful. It appears that the revised law was considered less helpful by groups other than the 20s and 30s or single-person households, which are typically the main demand segments for Jeonse and monthly rent.

Ham Young-jin, head of Zigbang Big Data Lab, analyzed, "Although the revised three lease laws aimed at stabilizing tenants' housing have entered their fourth month of enforcement, confusion persists. Even if there are no practical short-term measures, it is necessary to establish continuous and long-term systems and signals to provide psychological stability."

Regarding preferred types of housing lease transactions, 78.7% of respondents said they preferred Jeonse over monthly rent. Among Jeonse tenants, a vast majority of 98.2%, and 66% of monthly rent tenants preferred Jeonse transactions. More than half of landlords, 57.8%, also answered that they preferred Jeonse transactions.

When asked about plans to move with a certain lease type next time, 83.7% of all respondents said they were considering moving with Jeonse or monthly rent. 61.5% chose Jeonse, 22.2% chose deposit-based monthly rent (monthly rent, half-Jeonse), and the remaining 16.3% said they had no plans to move with a lease type.

Lab head Ham said, "Since both landlords and tenants show a high preference for Jeonse transactions, the shortage of Jeonse properties is a growing concern. It is expected that the shift to monthly rent will not occur rapidly."