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'Jeonse' to purchase price ratio at 68.8% last month: KB Kookmin Bank Updated: 2014-07-11 14:28:21 KST

'Jeonse' prices in Korea are fast closing in on record levels according to KB Kookmin Bank's real estate statistics.
For those who are not familiar, 'Jeonse' is a unique system in Korea, where tenants, instead of paying rent, cough up a hefty, up-front deposit - typically a large percentage of the property's value - which is then refunded in its entirety, or renewed, after a set period.
The nation's Jeonse to purchase price ratio climbed to a near 69 percent last month a single percentage point shy of its highest level on record set in October 2001.
The southwestern city of Gwangju showed the highest at 78 percent followed by the southeastern city of Daegu.
Seoul was at 64 percent.
Analysts attribute the upward trend to a growing number of people feeling less inclined to buy because of uncertainties about the housing market.


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