Significant decrease in Seoul multi-generational jeonse transaction volume
People prefer monthly rent, and anxiety regarding charter fraud is growing
[아시아경제 임온유 기자] “This is the house where Villawang invested in a gap. Never, ever, never be relieved. You will never know if you don’t get hurt.”
This is a review of an officetel in Incheon registered on the real estate review platform Jippum. As large-scale charter fraud such as ‘Villa King’ was recently revealed, it can be seen that the anxiety of tenants has increased extremely. A person in charge of housekeeping said, “There is an increasing demand from users who check reviews to see if they got their deposit back through recent reviews.”
The spread of anxiety regarding villa charter can also be seen in the drastically reduced transaction status. According to the Seoul Real Estate Information Plaza on the 24th, a total of 4952 transactions were made for multi-generational and coalition rentals in Seoul in November last year. It decreased by 16.7% (990 cases) compared to 5942 cases in the previous month. In the first half of last year alone, the monthly average villa charter transaction volume reached 7294, which is a sharp decline in half a year. December is also similar with 4052 cases so far. There are still a few days left before the actual transaction registration deadline, but it is unlikely to deviate much from that level.
The contraction of the villa charter market reflected the preference for monthly rent due to high interest rates, but the recently revealed villa king charter scam was a direct hit. This is because tenants are reluctant to rent a jeonse with a large deposit as it is known that there are forces extorting deposits for jeonse, including realtors as well as building owners and sales agents.
If a new tenant cannot be found, the landlord loses the ability to return the deposit to the existing tenant. It is fortunate if the loan is available, but if not, the existing tenants have no choice but to wait vaguely. Eventually, the repetition of this vicious cycle further stagnates the villa charter market.
An official from an authorized brokerage office in Hwagok-dong, Gangseo-gu, Seoul, where the charter fraud was concentrated, said, “The Villa Wang incident broke out and the person looking for a charter dried up.”
Reporter Lim On-yu ioy@asiae.co.kr
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