"Monthly Rent is Better"... 55.8% of Small Apartments in Gyeonggi-do Are 'Monthly Rent'

From January to November Last Year, Apartments Under 60㎡ in Gyeonggi-do
190,000 Monthly Rentals, Accounting for 55.8%, a Record High
In Paju, Monthly Rentals Account for 81.6%
Monthly Rent Over 1 Million Won Also at an All-Time High

Last year, the monthly rental transactions of small apartments in Gyeonggi Province reached the highest level since 2011. It is analyzed that concerns about jeonse fraud and the increased burden of loan interest due to high interest rates led to the rise in demand for monthly rentals.

On the 17th, Economy Man Lab analyzed the Ministry of Land, Infrastructure and Transport's actual transaction price disclosure system and found that from January to November last year, the total number of jeonse and monthly rental transactions for apartments with exclusive areas of 60㎡ or less in Gyeonggi Province was 190,046. This is the highest since the Ministry started compiling related statistics in 2011.

In particular, the proportion of monthly rental transactions among small apartment lease transactions in Gyeonggi Province recorded an all-time high. Monthly rental transactions reached 106,128, accounting for 55.8% of all lease transactions. Jeonse transactions were recorded at 83,918 (44.2%). The proportion of monthly rental transactions in Gyeonggi Province has been increasing annually: 43.0% in 2019, 46.7% in 2020, 49.4% in 2021, and 53.9% in 2022. Since 2022, the share of monthly rentals has surpassed jeonse.

By region, Paju-si has the highest proportion of monthly rentals among small apartments. Out of 8,685 jeonse and monthly rental transactions for small apartments in Paju, 7,088 were monthly rentals. The monthly rental proportion reaches 81.6%.

Following are Hwaseong-si (76.8%), Osan-si (71.8%), Namyangju-si (71.4%), Yeoju-si (68.9%), Yangju-si (68.8%), Pyeongtaek-si (68.0%), Gimpo-si (66.3%), Uiwang-si (63.3%), and Icheon-si (60.0%), where the monthly rental proportions are also high.

Transactions with monthly rents exceeding 1 million KRW also hit a record high. The number of monthly rental transactions over 1 million KRW for small apartments in Gyeonggi Province rose from 793 in 2020 to 2,672 in 2021, 6,115 in 2022, and 6,872 in 2023.

Hwang Hansol, a research fellow at Economy Man Lab, said, "Due to the Bank of Korea's base rate hike in 2022, the interest rates on jeonse loans increased and jeonse fraud appeared, causing monthly rental transactions to surpass jeonse for the first time." He added, "The proportion of monthly rentals may increase especially for small apartments, which have high demand from younger people with limited financial capacity."