January Monthly Rent Transactions 11,878, Accounting for 56.2% of Total
In January of this year, the proportion of monthly rent in the nationwide villa (multi-family and row houses) lease market reached the highest level ever recorded. The volume of monthly rent transactions also hit an all-time high due to the avoidance of Jeonse (key money deposit) leases.
On the 20th, Economic Man Lab, a real estate information provider, reviewed the Ministry of Land, Infrastructure and Transport's actual transaction price disclosure system and found that the total number of villa Jeonse and monthly rent transactions nationwide in January 2024 was 21,146. Among these, Jeonse transactions accounted for 9,268, while monthly rent transactions were 11,878. The share of monthly rent in lease contracts was 56.2%, marking the highest figure since the Ministry began compiling related statistics in 2011 (based on January data each year). The nationwide January monthly rent transaction ratio for villas has been rising steadily: 34.4% in 2021, 42.8% in 2022, and 53.2% in 2023.
Among the 17 metropolitan cities and provinces nationwide, Busan had the highest proportion of villa monthly rent transactions. In January this year, Busan recorded 1,582 villa Jeonse and monthly rent transactions. Of these, Jeonse transactions were 309, and monthly rent transactions were 1,273, making the monthly rent share 80.5%.
Following Busan were Gyeongnam (76.3%), Sejong (75.9%), Chungnam (75.3%), Jeonnam (65.9%), Gyeongbuk (65.7%), Daegu (63.9%), and Jeju (63.0%). In the metropolitan area, Gyeonggi and Seoul both recorded 53.6%, while Incheon recorded 48.2%.
The volume of villa transactions with monthly rent over 1 million won is also on the rise. In January, the nationwide villa monthly rent transactions exceeding 1 million won reached 923, the highest ever recorded since related statistics began. In particular, Seoul accounted for 696 of these transactions, representing 75.4% of the total. The number of monthly rent transactions over 1 million won has been increasing steadily: 153 in 2019, 175 in 2020, 225 in 2021, 495 in 2022, and 802 in 2023.
Hwang Hansol, a research fellow at Economic Man Lab, said, “Due to the avoidance of Jeonse caused by incidents of non-return of Jeonse deposits, preference for monthly rent is strengthening in the villa lease market. The volume of high-priced villa monthly rent transactions exceeding 1 million won is also expected to continue increasing.”
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