"Live in a new Cheongdam apartment for 20 years for 1.1 billion won"... Long-term Jeonse rentals flocking to Gangnam and Seocho [Jip Nawara Ttukttak!]

[Financial News] An opportunity has arisen to live in a new apartment in a prime location in Seoul for an extended period at a price lower than the market rate. However, as income criteria and first-priority subscription conditions vary significantly depending on the housing type and size, it is just as important to assess your qualifications as it is to choose the home you want.
According to the '51st Recruitment Notice for Long-term Jeonse Housing' by the Seoul Housing & Urban Development Corporation (SH Corporation) on the 9th, a large number of newly built apartments in key areas of Seoul, such as Gangnam and Seocho, have been included in the subscriptions starting on the 14th. Long-term Jeonse housing is public rental housing supplied at a level of 80% or less of the surrounding Jeonse market rate, allowing residents to live for a long period by paying only a deposit without monthly rent.
■ Cheongdam LE EL 1.17 billion won... THE H Bangbae supplies 133 units
The most notable location is 'Cheongdam LE EL' in Cheongdam-dong, Gangnam-gu. 57 units with an exclusive area of ​​59m2 are being supplied, consisting of 51 units for general supply and 6 units for priority supply. The Jeonse deposit is 1.17 billion won.
While the security deposit itself is substantial, the location is a strong point. It is directly adjacent to Cheongdam Station on Subway Line 7, and Bongeunsa Station on Line 9 is just one bus stop away. Situated along the Hangang River, it is within walking distance of elementary, middle, and high schools. With the Daechi-dong cram school district also nearby, it is a location likely to attract interest from those seeking better education for their children. However, the high cost of living is a factor to consider, given the characteristics of the Cheongdam, Apgujeong, and Samseong-dong living areas.
The location with the largest volume in this new supply is 'THE H Bangbae' in Seocho-gu. It consists of 133 units with an exclusive area of ​​59m2, comprising 125 units for general supply and 8 units for priority supply. The Jeonse deposit is 850.2 million won.
THE H Bangbae is a large complex with over 3,000 households located between Chongshin University Station (Lines 4 and 7) and Naebang Station (Line 7). Using Line 7, it is easy to travel towards Gangnam-gu Office and Cheongdam, and commuting to Pangyo is also possible by transferring to the Shinbundang Line at Nonhyeon Station.
There is also 'Doosan We've The Prestige' in Gaebong-dong, Guro-gu, as an option with a relatively low deposit burden. Seven units with an exclusive area of ​​45m2 are being supplied with a deposit of 322.14 million won, and two units with an exclusive area of ​​59m2 are being supplied with a deposit of 442.26 million won.
The complex is close to Gaebong Station on Line 1 and offers convenient access to Anyangcheon and commercial facilities. The fact that it is about a 20-minute public transportation ride to Yeouido is also an advantage for office workers.
■ Pay attention to income criteria based on supply type and house size
The most important thing to note in this announcement is the eligibility requirements. You must be an adult member of a non-homeowning household residing in Seoul as of August 31, and you must meet all criteria regarding income, assets, and vehicles.
Total assets must be 662 million won or less, and the value of the vehicle must be 45.42 million won or less. If there are children born on or after March 28, 2023, the criteria may be relaxed depending on the number of children.
Regarding income, it is easy to start by checking whether the housing you want is a 'purchase type' or not.
For purchased housing units such as Cheongdam LE EL and THE H Bangbae with an exclusive area of ​​60m2 or less, the basic requirement is a monthly average income of 105% or less. In monetary terms, this is 4,004,031 won or less for a one-person household, 6,159,584 won or less for a two-person household, and 8,576,850 won or less for a three-person household. For dual-income households, this is relaxed to 140%.
On the other hand, the criteria for the first priority category of the Corporation Construction Type and Seoul REIT 3, with an exclusive area of ​​60m2 or less, are much lower, set at 70% or less of the average monthly income. This corresponds to 2,669,354 won or less for a single-person household, 4,106,389 won or less for a two-person household, and 5,717,900 won or less for a three-person household. The relaxed income criteria for dual-income households do not apply to this bracket either.
If the exclusive area exceeds 60m2, the limit of 150% or less of the average monthly income applies to both types. This is 5,720,045 won for a one-person household, 8,799,405 won for a two-person household, and 12,252,644 won for a three-person household, while dual-income households are eligible up to 200%.
■ "No opportunities for lower priority"... Must find a first-priority home first
Meeting the income criteria alone is not the end. Even for the same purchase type, residents of the autonomous district where the house is located are given first priority for exclusive use of less than 50m2, whereas for use between 50m2 and 60m2, at least 24 recognized payments on the housing subscription savings account are required to be given first priority.
The reason being first priority is important is that recruitment can end before the earliest spots are filled. In fact, for the 50th Long-Term Jeonse recruitment held last April, all spots were filled before the earliest spots were filled, with the exception of one unit for the housing vulnerable in the Naegok district. Therefore, it is necessary to adopt a strategy of first verifying whether you qualify for first priority for a specific unit after selecting a desired home.
When competing at the same rank, additional points also become important. You can receive up to 5 points for each of the five categories: continuous residence in Seoul, period of non-homeownership, applicant's age, number of dependents, and number of housing subscription savings payments.
If you are a multi-child household, the priority supply is also worth noting. Of the 291 new units being supplied, 38 are designated for priority allocation. Even if you are not selected for priority allocation, if there are general supply units available in the same complex and for the same area, you will be automatically converted to a general supply applicant without a separate application.
Applications for the first priority will be accepted on the upcoming 14th and 15th. The second priority is scheduled for the 16th, and the third and fourth priorities for the 17th; however, if there are sufficient applicants for the earlier priority groups, applications for the later priority groups may not be processed. The final winners are scheduled to be announced on March 5th of next year.
You can find more details on the YouTube channel 'Jip Nawara Ttukttak!'.


[email protected] Choi Ga-young Reporter