Jones Lang LaSalle Inc., CBRE Group, and other international real estate services providers are entering the Korean housing rental market amid changing residential style opting for monthly rents instead of long-term rents or home ownership.

JLL Korea, a local unit of Chicago-based real estate services company Jones Lang LaSalle, launched agency service in Korea to initiate residential investment and services here. It plans to provide comprehensive services from development to maintenance of luxury apartments, homes and condominiums.

The company that specializes in commercial realty services for properties such as offices, distribution centers, retail outlets and hotels has added residential service to its business portfolio.

“Brand power is important in Korea, and JLL’s reputation as a credible asset management company would appeal to Korean clients looking for property investment,” said Lee Han-koo, residential service director at JLL Korea. The company aims to gain a competitive edge in the Korean real estate market by incorporating business know-how accumulated in the commercial property industry, added Lee.

Earlier, Japan’s leading rental house construction company Daiwa House Industry Co. announced it will advance into Korean property market, and other Japanese firms like Daiwa Living Co. and Japan Security Service Inc. have already entered the market. Another commercial real estate tycoon CBRE currently restricted to commercial rent service is also mulling to expand business to add residential rents.

The Korean monthly rent market is burgeoning as more and more households turn to monthly rents from the long-term rents called jeonse that require a large lump-sum deposit or home ownership amid low interest rates. For home owners, the property market has become a good investment option amid diversified rent supplies from deregulations. Local commercial property market meanwhile has been stagnant these days due to a lack of supplies and low yield.

By Kim Gi-jung and Lim Young-sin

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]