March 30, 2021 12:34
The average price of jeonse or Korean-style deposit lease of an apartment in Seoul has surpassed W600 million for the first time (US$1=W1,134).
Leases shot up as a result of strengthened tenant rights and a growing housing shortage.
According to KB Kookmin Bank on Monday, the average jeonse in Seoul stood at W605.62 million in March, which was enough to buy an apartment just four years ago, when the current government was inaugurated.
Jeonse prices are increasing exponentially. The average lease surpassed W500 million only last August, the month after the new tenants rights went into effect.
It took four years and five months for the average jeonse in the capital to increase from W400 million to W500 million but then only seven months to shoot up another W100 million.
Sales prices are also rising despite the government's endless draconian attempts to rein them in with punitive taxes. The average sales price of an apartment in Seoul was W1.09 billion in March, up a whopping W18.01 million from the previous month.
In the 11 districts south of the Han River, the average apartment now sells for an eye-watering W1.31 billion on average.
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