The highest monthly price...Will the balloon effect of loan regulation increase?

Last month's monthly rent index, KB Real Estate statistics are the highest ever

13 ultra-high monthly rent transactions worth more than 20 million won this year

Demand for monthly rent increases and prices rise due to the recent tightening of loan regulations

[Anchor]
While apartment sales are slowing down due to loan regulations, demand is moving to monthly rent.

The monthly rent index in Seoul and the metropolitan area hit an all-time high based on KB Real Estate statistics, and if loan regulations continue, monthly rent prices are expected to rise more steeply.

I'm reporter Kim Ki-bong.

[Reporter]
While attention was focused on the sale price of apartments in Seoul and the jeonse price, which have risen breathlessly this year, the monthly rent price has jumped more steeply.

Based on the KB Real Estate Statistics Index, monthly rent jumped 4.43 percent while apartment prices in Seoul rose 1.99 percent in September compared to January this year.

Last month, the monthly rent index for apartments in Seoul and the Seoul metropolitan area hit its highest level since December 2015, when KB Real Estate statistics began.

In Seoul, ultra-high monthly rent is also coming out one after another, and 13 cases of monthly rent of more than 20 million won in Seoul were reported by September this year.

Not only apartments, but also non-apartments such as detached houses and villas are showing strong monthly rent.

Unlike sales and jeonse prices, monthly rent prices are difficult to fall, but due to full-fledged loan regulations, demand for monthly rent is increasing noticeably and prices are rising further.

[Moon Hyung-eun / Real Estate Agent (Yeonsu-gu, Incheon): The sale will be eliminated due to the increase in the number of people looking for monthly rent. The monthly rent sale. In the meantime, the price is going up a little. [Factually 50,000 won to 100,000 won]
The rise in monthly rent is also attributed to the already high selling price, the difficulty of raising a large amount due to loan regulations, and the conversion rate of jeonse to monthly rent is higher than the interest rate.

Experts believe that the rise in monthly rent will eventually act as a steeper factor in the price of lease on a deposit basis, which is an alternative demand.

[Yoon Ji-hae / Real Estate R114 Research Team Leader: If you look at the past year or two, the monthly rent has skyrocketed and the rate of transfer to the monthly rent has accelerated, so it will have the effect of pushing up the rent.]

Although the rise in sales prices has slowed down due to the restriction of loans, the balloon effect of rising monthly rent is expected to push up the jeonse price again and eventually become a pressure factor for the rise in sales prices.

I'm Kim Ki-bong of YTN.


Video editing: Han Soo-min
Design: Kim Hyo-jin