South Korea's home rental transactions contracted 6.1 percent on-month in November mainly due to a drop in seasonal demand, the government said Monday.
 
 
In the one-month period, the number of home rental transactions reached 115,138 units, down from 122,617 transactions in October, the Ministry of Land, Infrastructure and Transport said.
 

Compared with a year earlier, monthly transactions inched up 1.5 percent from 113,451 units.
  

Data showed that in the 11 months of this year, transaction numbers edged up 0.4 percent on-year to 1,353,957 units.
  

"There was a dip in people moving as temperatures fell that affected nationwide rental transaction numbers," a ministry official said. He, however, said on-year gains indicate the local housing market is still maintaining its growth momentum.
  

Data showed transactions in Seoul and the surrounding Gyeonggi Province and Incheon, which account for roughly half of the country's population, falling 7.1 percent on-month to 76,058 units, with numbers for the rest of the country decreasing 4.2 percent to 39,080 units.
  

Of all transactions reported, 44.6 percent, or 51,395, were monthly rent arrangements, with jeonse accounting for the rest at 63,743.
  

The number of jeonse leases dropped 7.3 percent on-month, with transaction involving monthly rent also down 4.5 percent.
  

Jeonse is a unique South Korean rental system where the tenant gives the homeowner a lump sum of money to lease a home without paying rent. This money is then returned after the lease expires.
  

There has been a move by homeowners in recent years to switch from jeonse to monthly rent, mainly because low interest rates make receiving regular rent more attractive than getting a lump sum of money. (Yonhap)