Seoul ‘jeonse’ price equivalent to 5 years of income

September 5, 2013 Leave a comment

Seoul ‘jeonse’ price equivalent to 5 years of income

2013.09.03 14:27:09

The average ‘Jeonse’ apartment price in Seoul, South Korea is on a par with five-year average income of urban worker households, data showed. “Jeonse,”refers to a lease system in which a tenant pays a large lump-sum deposit for typically a two-year rental period.  Jeonse price of a 99 to 132-square-meter apartment in the Seoul metropolitan area was at 216 million won ($197,807) as of year-end, which is a 3.94-fold increase from the previous year’s average annual income of 55 million won, according to a local realtor’s data on jeonse prices of 6.99 million apartments nationwide and the Statistics Korea’s urban worker household (comprising two or more persons) annual income. In 2008, the price was 146 million won, 3.14 times higher than average income of households with two or more individuals (46.8 million won).
By municipality, jeonse price in Seoul was five times higher than average income, Gyeonggi Province 3.09 times and Busan 2.80 times.

By district, jeonse prices in Seocho district was the highest 9.02 times compared to annual income, followed by Gangnam 8.31 times, Yongsan 7.24 times and Songpa 7.17 times. Nowon (3.16 times) and Dobong districts (3.17 times), known for relatively cheap jeonse prices, also witnessed their jeonse prices over three times higher than average income.

“In just two months in the latter half of this year, Jeonse price in Seoul grew around two percent,” said a local real estate information provider, “if jeonse crunch deepens in fall, the figure could hit record high by the end of this year.”

Filed under Macro Trends

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