President Lee: Jeonse Market Fluctuations Part of Normalization

President Lee Jae-myung addressed the recent decline in the availability of jeonse (long-term rental deposit) housing and the subsequent price increases, characterizing the situation as a "normalization process." During his first-anniversary press conference, Lee explained that the reduction in jeonse supply stems from homeowners selling their properties after the expiration of tax deferral periods.

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The decrease in jeonse supply and price increase is part of a normalization process.

Lee downplayed concerns about a significant surge in jeonse prices. He suggested that the demand from those seeking to purchase homes, rather than rent, absorbed the available supply. While acknowledging that statistics indicate a noticeable rise in jeonse prices due to lower availability, he asserted that the overall increase has not been a "massive surge."

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The reduction in jeonse supply is because multi-homeowners sold their properties within the tax deferral grace period.

Furthermore, President Lee commented on the unique nature of the jeonse system in South Korea, describing it as a form of private financing. He noted that this system is currently in a trend of gradual disappearance.

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Is there a jeonse price explosion? Not really. It's because homeowners bought the houses to live in themselves.