Real estate spike drops rental deposit ratio

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Real estate spike drops rental deposit ratio

A man walks past a real estate agency displaying rental listings in Seoul on June 23 as the city undergoes a sharp rise in housing prices. [YONHAP]

A man walks past a real estate agency displaying rental listings in Seoul on June 23 as the city undergoes a sharp rise in housing prices. [YONHAP]

 
A man walks past a real estate agency displaying rental listings in Seoul on Monday as the city undergoes a sharp rise in housing prices. 
 
The uptick in prices has pushed the city’s average jeonse (a lump-sum deposit-based rental system)-to-price ratio to its lowest level in over eight years. According to real estate platform R114, the average jeonse ratio — the proportion of rental deposit to property sales price — for 1.57 million apartment units across Seoul's 25 districts fell to 45.2 percent in May, the lowest since January 2017.
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