Slowdown hits Korean home lease system
More landlords are seen demanding monthly payments, threatening the future of 'jeonse' contracts
[SEOUL] A lengthy property market slump and low interest rates are threatening the future of a uniquely South Korean home lease system that traces its roots back to the 19th century.
Jeonse contracts have been a mainstay of the South's housing market for decades, offering tenants the enticing, and at first sight startling prospect of not actually paying rent.
Instead, the tenant forks out a hefty, up-front deposit - typically around 40 per cent of the property's value - which is then refunded in its entirety, or renewed, after two years.
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Property
US renters seeing chance of owning a home at record low: NY Fed survey
Shenzhen eases home buying to revive sales in China tech hub
Far East Orchard looks to sell Rendezvous Hotel Perth Central for A$18.5 million
Lendlease Global Reit’s committed portfolio occupancy rises to 88.8% in Q3
No bids for Pine Grove’s mega en bloc sale at S$1.95 billion price
China home sales slump 47% over May Day holiday vs 2023