LH to Supply 20,000 Purchased Rental Housing Units in Seoul Over Three Years, Including 15,000 for Young People

[Financial News] Korea Land and Housing Corporation (LH) will recruit tenants for 20,000 purchased rental housing units in central Seoul over the next three years. Of these, 15,000 units will be supplied for young people and about 3,400 units for newlywed couples.
On the 8th, LH announced the supply plan at an on-site meeting held at newly built purchased rental housing for young people in Jongno District, Seoul, to discuss solutions to youth housing issues.
The meeting was attended by Kim Yi-tak, the first vice minister of the Ministry of Land, Infrastructure and Transport (MOLIT); lawmakers Kim Nam-geun, Oh Gi-hyoung, and Lee Yong-seon; LH President Lee Seong-hun; and young city council members, among about 20 participants. After inspecting housing conditions, including floor plans, finishes, and built-in appliances, the participants discussed ways to expand supply.
Purchased rental housing allows residents to live in urban areas, near subway stations, or close to workplaces at about 40% of market rents, based on the first-priority category. The maximum residency period is 10 years, and it can be extended to up to 20 years if the tenant marries after moving in. Rent increases at contract renewal are capped at 5%. The units are equipped with built-in appliances, and applications can be submitted online or via mobile devices.
Demand among young people is concentrated on purchased rental housing in Seoul because of its transportation access and rental conditions. Last year, the average application competition ratio for purchased rental housing for young people in Seoul was 130 to 1, higher than the national average of 50 to 1.
To meet this demand, LH is improving funding support and the payment system for new-construction purchased rental housing so it can secure urban homes earlier. It is pursuing measures to provide private developers with initial funding for land purchases and to divide purchase payments according to each stage of development.
LH plans to secure well-located housing by awarding additional points to projects in areas with strong demand from young people, such as neighborhoods around universities. LH explained that new-construction purchased rental housing can be supplied relatively quickly because it takes one to two years from identifying candidate sites to move-in.
LH President Lee Seong-hun said, "New-construction purchased rental housing can be provided within one to two years from identifying candidate sites to move-in, making it a key tool for stabilizing the jeonse and monthly rental markets as quickly as possible. We will work to supply more good homes, faster, in locations preferred by young people."
At a panel discussion held after the meeting, participants said that high rents and a shortage of housing supply in urban areas were major causes of housing insecurity among young people. The young participants proposed expanding eligibility for purchased rental housing support to include middle-income young people.
[email protected] Choi Ga-young Reporter