Intensifying jeonse crisis in the influence of the lease law
In 4 months… 117,000 transactions
1.14 million cases this year, the largest
Last month, the nationwide home sales volume exceeded 100,000 again in four months since July. Until last month this year, the cumulative home sales volume was the highest since the 2006 statistics were prepared. It is an analysis that the phenomenon of’panic buying (panic buying)’ is reappearing due to the intensifying cheonsei crisis caused by the government’s push for lease protection law.
According to the data on the’November home sales transaction volume’ released by the Ministry of Land, Infrastructure and Transport on the 24th, the nationwide transaction volume was 11,6578 last month, up 25.9% from 9,2769 cases.
The nationwide home sales volume fell below 100,000, falling for two consecutive months in August and September after recording a yearly high at 14,419 transactions in July. In October, it rebounded to 9,2769 cases, and then again passed 100,000 cases last month.
The cumulative transaction volume from January to November reached a record high of 113,090. It jumped 65.8% compared to the same period of the previous year (686,000 cases), and 28.5% higher than the previous five-year average of 886,000 cases. Most of the trading deals were concentrated in apartments. Apartment sales transactions rose 81.1% year-on-year to 82,8051 cases from January to November.
It is analyzed that the main reason is that the demand for jeonse has quickly turned into demand for jeonse due to shortage of jeonse properties after the enforcement of the new lease protection law such as the ceiling system for jeonse and monthly rent and the right to apply for contract renewal at the end of July. As the prices of houses rose all over the country, there was a panic buying phenomenon in the provinces as well. Shim Gyo-eon, a professor at Konkuk University’s Real Estate Department, said, “As the jeonse property disappeared and the price surged, unstable tenants turned into buyers, and the vicious cycle of boosting the sale price was repeating.” Criticized.”
As real estate regulations were strengthened, the’balloon effect’, which led to investment demand in unregulated areas, also had an impact. The volume of home sales increased a lot in the provinces. The volume of local home sales was 75641 last month, up 48.7% from 5,885 last month. On the other hand, the volume of home sales in Seoul and the metropolitan area was 182 and 41,117, respectively, down 5.1% and 1.8% from the previous month.
By lease type, jeonse transactions decreased and monthly rent increased significantly. Last month, the nationwide charter transaction volume was 10613, down 2.9% from the previous month. Compared to the same month last year, it increased 7.6%. Monthly rent (72,965 cases) increased 5.5% from the previous month and 22.0% from the same month last year. In particular, Seoul’s monthly monthly rent transaction volume (24,639 cases) surged 39.2% from the same month last year. Lee Chang-moo, a professor at Hanyang University’s Department of Urban Engineering, emphasized that “the government’s excessive regulation has distorted market transactions,” and emphasized that “the lease protection law should be abolished and the market should be stabilized by supplying quality housing instead of regulation.”
Reporter Choi Jin-seok [email protected]
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