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Contrary to the expectation that the second and fourth measures will include new cheonsei measures in addition to housing supply measures, the level of repetition of the jeonse plan announced in November last year was limited. There was no new content other than non-housing remodeling, purchase rental expansion and refinement, such as hotels and office buildings announced at the time.
Earlier, President Moon Jae-in said at a New Year’s press conference that “Last year we announced the jeonse plan, but the second and fourth measures will include a plan to rapidly increase the amount of jeonse.” It is not possible.
Unrest in the jeonse market is still in the new year. According to the Korea Real Estate Agency, the rent for apartments nationwide in the first week of February (as of the first day) increased from 0.23% last week to 0.24% this week. In the case of Seoul, it has risen 0.11% in the first week of this month, for 84 consecutive weeks. Since the enforcement of the second lease law, such as the government’s right to apply for a contract renewal in July of last year, and the upper limit on monthly rent, the jeonse crisis continues this year.
Experts point out that it is regrettable that the follow-up pre-generation measures were omitted from this second and fourth countermeasures, as the new lease law labor has not ended. Rather, it is prevailing in the opinion that if the business in the city center is promoted with this measure, the demand for relocation will arise, further stimulating the Seoul jeonse price.
Ji-hae Yoon, senior researcher at Real Estate 114, said, “This supply measure should take at least five years, but it is inevitable that it will be a factor in the rise of jeonse prices in the sense that migration and demolition can be carried out simultaneously.” It was diagnosed as a situation where the number of people waiting to apply for the third new city in the metropolitan area that accepts subscriptions is increasing, and the demand for jeonse to maintain the housing-free requirement is rushing and encouraging the jeonse crisis.”
He added, “Without an additional jeonse plan, the metropolitan cheonsei crisis will continue.” “In the case of people with long periods of homelessness, in order to eliminate compulsory residence in preparation for subscription or to increase the turnover rate, the lessor may also ease the mandatory residency requirements. It looks like you need a device.”
Young-jin Ham, head of Jikbang Big Data Lab, said, “As part of the pre-generation plan, the government said that it could supply vacancy in hotels, officetels, offices, etc. in the short term, but the total amount is less than the market’s expectations, and it is mainly for one or two households. It is limited to prepare for the unrest of the middle class in the rental market,” he said. “No matter how much the government does public development through circular maintenance projects, if existing houses are destroyed, demand for relocation will inevitably arise. “We need a complementary measure to close the gap in price uncertainty in areas where tenants are scarce.” He added, “In Seoul, Sejong, Ulsan, Daejeon, and Gwangju, the chaos in the jeonse market will continue throughout the year.”