Park, Miseon

K-Developedia(KDI School) Repository

Changing LandsCape of  private rentaL Market  in koreaMiseon Park KRIHSSpecIalRepoRt 2015Vol.25kriHs sPecial rePort  2015 Vol. 25Not for saleISBN 979-11-5898-064-1ISBN 978-89-8182-991-9 (Set)changing landscape of private RentalMarket in Koreakorea has developed a unique rental system, the so-called chonsei. Under the chonsei contract, tenants deposit a lump-sum of money equivalent to over half of the housing price to house owners for the rental contract period. During that period, tenants do not need to pay rent on a monthly basis. once the contract is over, the landlords are expected to return the same amount of money back to the renters; however, the landlords are able to use the deposit money during the contract period for their own purposes. During the time of escalating housing prices and high interest rates, both the renters and landlords have favored the chonsei contract rather than monthly rent with deposit (MrD). the tenants prefer chonsei because they don’t need to pay rent every month, and they tend to consider the chonsei deposit money as a mandatory saving or the seed money to buy a house in the near future. What's more, landlords also favor chonsei because collecting rent every month rent is cumbersome and has a default risk. in addition, they are able to leverage the chonsei deposit to buy another house as an investment. this works well under the conditions that house prices keep increasing with high interest rates and a shortage of rental housing units. However, those factors fueling the chonsei system have faded out with the mass provision of housing units, pessimistic expectations over housing prices and economic recovery, and low interest rates.  KRIHS SpecIal RepoRt SeRIeSspecial report 1  public dispute resolution in koreaspecial report 2 structural Changes in the rental housing Market: Causes and policy responsesspecial report 3  Building infrastructure for the facilitation of  economic Cooperation in northeast asia in the 21st Century: focusing on Land transport Linkages between korea and Chinaspecial report 4 Land Management information system in koreaspecial report 5 Building a peace Belt in the south-north korean Border regionspecial report 6 Land suitability assessment system for smart Urban growth in koreaspecial report 7 study on effective relocation of  public agencies outside the Capital region of  south koreaspecial report 8 establishment of  national gis of  koreaspecial report 9  Mitigation Countermeasures for environmental degradation from development: focusing on planning process and institutionalizationspecial report 10 Changes and achievements of  environmental and Water resources policiesspecial report 11  planning strategies towards sustainable Land Management in korea: Linking spatial development plan and environmental planspecial report 12 high speed rail Construction of  korea and its impactspecial report 13 korea planning support systems: frameworks & development strategiesspecial report 14  selecting inter-korean Collaborative projects in the Border region in the east sea Coastal area and the analysis of  its ripple effectsspecial report 15  fundamentals of  spatial development and planning Before and after the reunification of  germanyspecial report 16 the development of  transportation infrastructure in korea: retrospect and prospectspecial report 17 green growth: a paradigm shift in regional developmentspecial report 18  enhancement of  Linkage between housing and transportation policies: focus on residential Location Choice in the seoul Metropolitan areaspecial report 19 a paradigm shift and policies for river Management in koreaspecial report 20  a study on transport infrastructure policy in smart knowledge society: focusing on the impact of  information and Communication technology (iCt) on travel Behaviorspecial report 21  a study of  the status diagnosis on health and Longevity in Cities by region for the improvement of  the Quality of  Lifespecial report 22  a study on the Urban industrial Location policy for the vitalization of  regional economyspecial report 23  the national Minimum standard on transport services of  the road infrastructure’s accessibilityspecial report 24  analysis on the effects of  housing policy for rural areas in korea : Using system dynamics Modelspecial report 25  Changing Landscape of  private rental Market in koreaspecial report 26 research on Urban policy development for Urban resilience reinforcementspecial report 27  developing territorial sentiment indicators for place-based and Citizen-oriented policy Makingto read the reports above, go to:http://www.gdpc.kr/publication/report.do?cate=specialChanging LandsCape of  private rentaL Market  in koreaMiseon Park KRIHSSpecIalRepoRt 2015Vol.25kriHs sPecial rePort  2015 Vol. 25Not for saleISBN 979-11-5898-064-1ISBN 978-89-8182-991-9 (Set)changing landscape of private RentalMarket in Koreakorea has developed a unique rental system, the so-called chonsei. Under the chonsei contract, tenants deposit a lump-sum of money equivalent to over half of the housing price to house owners for the rental contract period. During that period, tenants do not need to pay rent on a monthly basis. once the contract is over, the landlords are expected to return the same amount of money back to the renters; however, the landlords are able to use the deposit money during the contract period for their own purposes. During the time of escalating housing prices and high interest rates, both the renters and landlords have favored the chonsei contract rather than monthly rent with deposit (MrD). the tenants prefer chonsei because they don’t need to pay rent every month, and they tend to consider the chonsei deposit money as a mandatory saving or the seed money to buy a house in the near future. What's more, landlords also favor chonsei because collecting rent every month rent is cumbersome and has a default risk. in addition, they are able to leverage the chonsei deposit to buy another house as an investment. this works well under the conditions that house prices keep increasing with high interest rates and a shortage of rental housing units. However, those factors fueling the chonsei system have faded out with the mass provision of housing units, pessimistic expectations over housing prices and economic recovery, and low interest rates.  KRIHS SpecIal RepoRt SeRIeSspecial report 1  public dispute resolution in koreaspecial report 2 structural Changes in the rental housing Market: Causes and policy responsesspecial report 3  Building infrastructure for the facilitation of  economic Cooperation in northeast asia in the 21st Century: focusing on Land transport Linkages between korea and Chinaspecial report 4 Land Management information system in koreaspecial report 5 Building a peace Belt in the south-north korean Border regionspecial report 6 Land suitability assessment system for smart Urban growth in koreaspecial report 7 study on effective relocation of  public agencies outside the Capital region of  south koreaspecial report 8 establishment of  national gis of  koreaspecial report 9  Mitigation Countermeasures for environmental degradation from development: focusing on planning process and institutionalizationspecial report 10 Changes and achievements of  environmental and Water resources policiesspecial report 11  planning strategies towards sustainable Land Management in korea: Linking spatial development plan and environmental planspecial report 12 high speed rail Construction of  korea and its impactspecial report 13 korea planning support systems: frameworks & development strategiesspecial report 14  selecting inter-korean Collaborative projects in the Border region in the east sea Coastal area and the analysis of  its ripple effectsspecial report 15  fundamentals of  spatial development and planning Before and after the reunification of  germanyspecial report 16 the development of  transportation infrastructure in korea: retrospect and prospectspecial report 17 green growth: a paradigm shift in regional developmentspecial report 18  enhancement of  Linkage between housing and transportation policies: focus on residential Location Choice in the seoul Metropolitan areaspecial report 19 a paradigm shift and policies for river Management in koreaspecial report 20  a study on transport infrastructure policy in smart knowledge society: focusing on the impact of  information and Communication technology (iCt) on travel Behaviorspecial report 21  a study of  the status diagnosis on health and Longevity in Cities by region for the improvement of  the Quality of  Lifespecial report 22  a study on the Urban industrial Location policy for the vitalization of  regional economyspecial report 23  the national Minimum standard on transport services of  the road infrastructure’s accessibilityspecial report 24  analysis on the effects of  housing policy for rural areas in korea : Using system dynamics Modelspecial report 25  Changing Landscape of  private rental Market in koreaspecial report 26 research on Urban policy development for Urban resilience reinforcementspecial report 27  developing territorial sentiment indicators for place-based and Citizen-oriented policy Makingto read the reports above, go to:http://www.gdpc.kr/publication/report.do?cate=specialChanging LandsCape of  private rentaL Market  in koreaMiseon Park KRIHSSpecIalRepoRt 2015Vol.25kriHs sPecial rePort  2015 Vol. 25Not for saleISBN 979-11-5898-064-1ISBN 978-89-8182-991-9 (Set)changing landscape of private RentalMarket in Koreakorea has developed a unique rental system, the so-called chonsei. Under the chonsei contract, tenants deposit a lump-sum of money equivalent to over half of the housing price to house owners for the rental contract period. During that period, tenants do not need to pay rent on a monthly basis. once the contract is over, the landlords are expected to return the same amount of money back to the renters; however, the landlords are able to use the deposit money during the contract period for their own purposes. During the time of escalating housing prices and high interest rates, both the renters and landlords have favored the chonsei contract rather than monthly rent with deposit (MrD). the tenants prefer chonsei because they don’t need to pay rent every month, and they tend to consider the chonsei deposit money as a mandatory saving or the seed money to buy a house in the near future. What's more, landlords also favor chonsei because collecting rent every month rent is cumbersome and has a default risk. in addition, they are able to leverage the chonsei deposit to buy another house as an investment. this works well under the conditions that house prices keep increasing with high interest rates and a shortage of rental housing units. However, those factors fueling the chonsei system have faded out with the mass provision of housing units, pessimistic expectations over housing prices and economic recovery, and low interest rates.  KRIHS SpecIal RepoRt SeRIeSspecial report 1  public dispute resolution in koreaspecial report 2 structural Changes in the rental housing Market: Causes and policy responsesspecial report 3  Building infrastructure for the facilitation of  economic Cooperation in northeast asia in the 21st Century: focusing on Land transport Linkages between korea and Chinaspecial report 4 Land Management information system in koreaspecial report 5 Building a peace Belt in the south-north korean Border regionspecial report 6 Land suitability assessment system for smart Urban growth in koreaspecial report 7 study on effective relocation of  public agencies outside the Capital region of  south koreaspecial report 8 establishment of  national gis of  koreaspecial report 9  Mitigation Countermeasures for environmental degradation from development: focusing on planning process and institutionalizationspecial report 10 Changes and achievements of  environmental and Water resources policiesspecial report 11  planning strategies towards sustainable Land Management in korea: Linking spatial development plan and environmental planspecial report 12 high speed rail Construction of  korea and its impactspecial report 13 korea planning support systems: frameworks & development strategiesspecial report 14  selecting inter-korean Collaborative projects in the Border region in the east sea Coastal area and the analysis of  its ripple effectsspecial report 15  fundamentals of  spatial development and planning Before and after the reunification of  germanyspecial report 16 the development of  transportation infrastructure in korea: retrospect and prospectspecial report 17 green growth: a paradigm shift in regional developmentspecial report 18  enhancement of  Linkage between housing and transportation policies: focus on residential Location Choice in the seoul Metropolitan areaspecial report 19 a paradigm shift and policies for river Management in koreaspecial report 20  a study on transport infrastructure policy in smart knowledge society: focusing on the impact of  information and Communication technology (iCt) on travel Behaviorspecial report 21  a study of  the status diagnosis on health and Longevity in Cities by region for the improvement of  the Quality of  Lifespecial report 22  a study on the Urban industrial Location policy for the vitalization of  regional economyspecial report 23  the national Minimum standard on transport services of  the road infrastructure’s accessibilityspecial report 24  analysis on the effects of  housing policy for rural areas in korea : Using system dynamics Modelspecial report 25  Changing Landscape of  private rental Market in koreaspecial report 26 research on Urban policy development for Urban resilience reinforcementspecial report 27  developing territorial sentiment indicators for place-based and Citizen-oriented policy Makingto read the reports above, go to:http://www.gdpc.kr/publication/report.do?cate=special

Changing landscape of private rental market in Korea

http://www.gdpc.kr/data/special/Special%20Report%2025.pdf

Changing landscape of private rental market in Korea

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