Jeonse

Abstract: This study examined the price spillover effect of housing submarkets in cities in the Seoul metropolitan area in South Korea by using the Granger causality test and vector autoregressive model (VAR). We found that housing prices showed a higher spillover effect within regions with similar housing market characteristics. Additionally, the spatial spillover of housing prices revealed a difference between sales price and jeonse price. The spillover of jeonse price was characterized by mutual influence among neighboring cities, while that of sales price was characterized by the influence being transferred in one direction hierarchically. Furthermore, the effects of housing price indicated a slight difference between sales price and jeonse price. Although jeonse price was mainly affected by a neighboring area (geographic boundary), sales price was more influenced by the city with the highest housing prices. Lastly, the housing price spillover tended to be expansive around the city with the highest price. These results suggest that housing price policies targeting specific regions or areas in Korea must be differentiated according to the type of occupancy (jeonse or sales), and it is essential to consider the externalities when promoting policies in the housing market wherein externalities may be significant.

Abstract: Jeonse is a dominant and unique tenure of South Korea. Contrary to home sale prices that repeatedly go up and down, the cost of jeonse deposit has been rising rapidly to the extent that it threatens the tenure security of low-income families. Furthermore, under the current low interest rate policy, landlords are increasingly turning away from jeonse to monthly rental for higher monetary yields. This paper aims to identify factors that contribute to the rise and fall of the jeonse system and its eventual shift towards monthly renting. It touches upon the major issues facing the South Korean housing sector, including the changing economic environment of housing tenure, tenure security for low-income households, and the streamlining of the rental market. The Jeonse debate is concerned with the South Korea's rental housing market restructuration, which includes: the recovery from the rapid fall of jeonse prices during the 1997 financial crisis, the demand resulting from the reconstruction of large ap...

Abstract: Housing prices, including Jeonse prices, are impacted by human psychological attitudes. News articles are one of the factors that influence such human psychological attitudes. Previous studies have confirmed the potential for utilization of news articles in the analysis of the real estate market. However, no actual studies on real estate price forecasting through news articles have yet been carried out. Accordingly, the present study proposes a short-term forecast model of apartment Jeonse prices through big data analysis of news articles. The forecast model was a regression model using Jeonse prices for apartments in the Pangyo area as the dependent variable and the Internet search frequency of news article keywords as the independent variable. The news article-based forecast model was created from the independent variable made as a combination of 4 keywords with a time shift of 10 months. Comparison with time-series models frequently used for real estate price forecasting showed that the model was superior in terms of forecast accuracy and forecast lead time. It is expected that use of the news article-based forecast model according to the present study will allow for the establishment of more effective Jeonse price-related policies.

Abstract: This study aims to introduce the Youth Jeonse Rental Housing Program using the unique characteristics of the Korean housing market to explain its theoretical value in the current theoretical landscape of public housing and to identify the effect of the program on the regional housing price.,This study uses three hedonic price models on the basis of Korea’s housing market, namely, own, jeonse and rent models. Moreover, it uses the hierarchical linear model to include both house- and region-level variables.,Analysis shows that youth rental housing has no effect on falling prices in the region unlike long-term rental housing. Thus, the policies using regional tenure system are more effective in the social mix than existing public housing policies.,This study introduces the program using Korea’s unique tenure system called jeonse, arguing its advantages for the supplier, recipients and regional neighborhoods. Suppliers can easily provide affordable housing at a low economic and administrative cost, whereas recipients can easily mix socially, have broad housing choices and a fighting chance for a stable life. Additionally, this policy has a low negative impact on the region. Furthermore, this study theoretically presents the potential for mixed paths other than demand or supply policies. It introduces and analyzes special policy objectives for youth housing problems.