Journal of the Association of Korean Geographers ISSN:2287-4739(Print) 2733-8991(Online) 한국지리학회지

This study examines the effects of expected jeonse yield on both sales transaction volume and jeonsee contracts. The expected jeonse yield is used as a proxy measures for gap investment. Recognizing that the motivation for gap investment may change based on the level of the jeonse-to-price (JTP) ratio, additional analyses were performed with splitting the data into cases where the JTP ratio of the samples exceeds the median and where it does not. A panel regression model was formulated using actual transaction data, jeonse yields, interest rates, and other data from 2014 to 2021. The findings indicate that as the expected jeonse yield rises, sales transaction volume tends to increase as well. Furthermore, when the jeonse ratio is higher, the need for personal funds is reduced, which strengthens the purchasing tendency. Notably, the coefficient was larger when the JTP ratio was above the median, while no significant results were observed when it was below the median. This confirms that a higher JTP ratio correlates with a stronger purchasing tendency due to the reduced need for personal funds, while a lower JTP ratio increases the need for personal funds and weakens the purchasing tendency. Additionally, jeonse contracts also tends to rise with increases in the expected return on jeonse, with a larger coefficient observed when the JTP rate is above the median. This is likely because a higher JTP rate reduces the risk of deposit non-return, thanks to liquidity provided by jeonse loans and deposit return guarantees, which enhances the incentive for jeonse contracts.