The number of homes costing less than W100 million in jeonse or Korean-style deposit leases and favored among low-income households has dropped significantly (US$1=W1,074).
Property information provider Budongsan Serve on Wednesday said a survey of the jeonse prices of 6.33 million households shows that only 29 percent went for less than W100 million. In 2006, it was still 60 percent, but their proportion declined to 54 percent in 2008 and 43 percent in 2010.
In contrast, the number of homes for W100-200 million in jeonse rose from 31 percent in 2001 to more than 50 percent now. This shows that it is becoming increasingly expensive for low-income households to find affordable homes for lease.
Relatively expensive homes available for more than W200 million in jeonse rose from 6 percent in 2006 to 16 percent today.
"As a growing number of people expect the value of real estate to stagnate, more and more people are opting to live in jeonse homes rather than buying their own, and this should send jeonse prices upward for the time being," said Park Jeong-wook at Budongsan Serve.
"We desperately need measures to curb soaring rent and more affordable housing."