I was able to buy an apartment in the metropolitan area three and a half years ago at the current Jeonse price.

Jeonse prices for apartments in the metropolitan area (Seoul, Gyeonggi, Incheon) have risen to a similar level to the market price three and a half years ago.

According to KB Kookmin Bank's monthly housing price trend time series statistics today (13th), the average Jeonse price for apartments in the metropolitan area was 440.56 million won last month.

This is similar to the average sale price of apartments in the metropolitan area (446.7 million won) in January 2018.

Jeonse prices for apartments in the metropolitan area fell slightly in succession in 2018 and 2019, but rose by 10.23% last year when the new lease law, centered on the right to apply for contract renewal and the maximum monthly rent system, was implemented.

In the metropolitan area, the monthly increase rate reached 2.40% in November last year, but the monthly increase was gradually lowered. As a result, the monthly increase rate fell to 0.86% in May of this year.

However, since June, it recorded a monthly increase of 1% again, and last month (1.61%) broke the highest monthly increase this year.

The cumulative increase rate of apartment Jeonse prices in the metropolitan area reached 10.26% until August this year, exceeding the annual increase rate of last year (10.23%).

Until August of this year, the rate of increase in apartment rental prices in Seoul, Gyeonggi, and Incheon reached 8.70%, 10.67%, and 12.76%, respectively.

Gyeonggi and Incheon have already surpassed last year's annual growth rates of 9.95% and 6.18%, and Incheon in particular has already more than doubled the annual growth rates of last year.

By basic group, the rate of increase in the price of apartments in Siheung was 22.14%, the highest in the country during the same period.

However, the Jeonse ratio (the ratio of jeonse to the sale price) for apartments in the metropolitan area is 55.3% in Seoul, 66.4% in Gyeonggi, and 68.3% in Incheon, showing a steady decline this year.

Overall, the Jeonse price has also risen, but it means that the sale price has jumped even more.

However, concerns are raised that the price of Jeonse may rise again from the end of July next year, when the two-year extension contract ends with a 5% upper limit on the Jeonse price in accordance with the new lease law applied from the end of July last year.

(Photo = Yonhap News)