[Asia Economy Reporter Kwak Minjae] Last year, the nationwide apartment jeonse and monthly rent transaction volume surpassed 1 million for the first time since 2011. This is interpreted as sales demand shifting to the rental market due to the continued high interest rates. In particular, the proportion of monthly rent transactions increased significantly.
On the 1st, Economic Manlab, a real estate information provider, reviewed the Ministry of Land, Infrastructure and Transport's actual transaction price disclosure system and found that the total nationwide apartment jeonse and monthly rent transaction volume in 2022 was 1,059,306 cases. This represents a 10.4% increase compared to the previous year (959,576 cases). It exceeded 1 million cases annually for the first time since statistics began in 2011.
The nationwide apartment jeonse transaction volume was 606,686 cases, a 0.1% decrease from the previous year, but the monthly rent transaction volume was recorded at 452,620 cases last year, a 28.5% increase from the previous year (352,150 cases), marking the highest ever.
As a result, the proportion of monthly rent contracts in the nationwide apartment rental market last year also reached 42.7%, the highest since statistics began.
By region, among the 231,846 apartment jeonse and monthly rent transactions in Seoul last year, monthly rent transactions accounted for 98,810 cases, making the monthly rent contract ratio 42.6%. In Gyeonggi-do, out of 349,711 cases, monthly rent transactions were 151,518, recording a monthly rent ratio of 43.3%. In Incheon, among 70,051 jeonse and monthly rent transactions, monthly rent transactions were 31,492, accounting for 45.0% of the rental market.
Additionally, the apartment monthly rent ratios were 40.0% in Busan, 42.9% in Daegu, 50.8% in Chungnam, 39.9% in Gyeongnam, 38.4% in Chungbuk, 40.5% in Daejeon, 41.9% in Gyeongbuk, 40.8% in Gangwon, 62.5% in Jeju, 40.1% in Ulsan, 47.5% in Sejong, 40.5% in Gwangju, 42.3% in Jeonbuk, and 36.1% in Jeonnam.
Hwang Hansol, a research fellow at Economic Manlab, said, “As the burden of loan interest increases due to interest rate hikes, sales demand is massively flowing into the jeonse and monthly rent market, and there is a growing preference for monthly rent among tenants who lack large sums of money.”
Meanwhile, nationwide apartment sales transactions reached 604,476 cases in 2021 but recorded 272,123 cases last year, a 55.0% decrease compared to the previous year.
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