'Transit-Oriented Youth Housing' Focused on Supply... Full of Issues with Actual Residency

Rental fees charged even for basic appliances... Encouragement of loopholes to avoid 'car ownership restriction' rules
Meal and cleaning fees sometimes imposed in houses remodeled from hotels

Ignored by target groups like youth and newlyweds... "Need to seriously consider housing for young people"

Urbaniel Chungjeongno, a youth housing near Chungjeongno Station in Seodaemun-gu, Seoul (Provided by Seoul City)

[Asia Economy Reporter Lee Chun-hee] Seoul City is facing ongoing controversies surrounding the 'Transit Station Area Youth Housing,' a key policy promoted to ensure housing stability.

A 29-year-old office worker, Mr. A (Seoul), recently experienced a frustrating situation while looking for a new place to move. At a real estate office he visited after seeing a listing online, he was introduced to the 'Urbaniel Chungjeongno' officetel in Chungjeongno, Seodaemun-gu, which was not listed on the internet. It is a 39㎡ two-room unit with a deposit of 112.8 million KRW and a monthly rent of 660,000 KRW. This property was initially supplied by Seoul City as youth housing near transit stations but remained unsold.

The problem was that tenants had to rent all basic appliances such as washing machines, refrigerators, and air conditioners separately, which are usually provided as standard options in general officetels. The rental cost alone was 100,000 KRW per month, and at the end of the rental period, tenants were required to purchase these items. Mr. A said, "I couldn't understand why I had to rent all the appliances in addition to paying the 660,000 KRW monthly rent."

Moreover, the officetel did not properly enforce the eligibility criteria for youth housing tenants. The eligibility rules for transit station area youth housing prohibit car ownership except for vehicles used for livelihood or for disabled persons. Violations can lead to cancellation of selection or contract termination.

However, the real estate office explained differently, saying, "It is acceptable if the car is registered under the name of a cohabitant, not the tenant." Mr. B, who actually moved into this officetel, also said, "I was told that parking was possible for 50,000 KRW per month." In practice, the car ownership ban is not being enforced at all. Lotte Asset Development, the property manager, explained, "There may have been confusion during the explanation process, or the agent or staff might have given an exaggerated explanation."

A Seoul City official stated, "If car use is detected, strong measures such as eviction will be taken. However, due to ongoing complaints related to car ownership, we are considering allowing limited car use for households with children." Regarding the home appliance issue, they added that from now on, appliances will be provided as options rather than through separate rentals in future projects.

Youth housing near the station in Sungin-dong, Jongno-gu, Seoul, supplied through hotel remodeling.

Earlier, the transit station area youth housing supplied in Sungin-dong, Jongno-gu, also sparked controversy. This housing, remodeled from a hotel, had carpets inside the units and charged additional meal and cleaning fees, leading to criticism that it was more of a 'youth hotel' than 'youth housing.' The management company decided to remove the problematic furniture and withdraw the options.

Industry insiders point out that Seoul City’s focus on expanding supply has led to ongoing controversies surrounding transit station area youth housing. In the rush to meet housing supply targets, adverse effects have emerged in actual operations.

Various special privileges have also been granted. For example, the Chungjeongno Station youth housing was built on a site zoned as a third-class general residential area with a maximum floor area ratio (FAR) of 250%, but it was upgraded to a quasi-residential area and constructed with an FAR close to double that, at 463%. Recently, Seoul City has further eased regulations to promote additional supply. For sites larger than 1,000㎡ aiming to build transit station area youth housing, if they meet just one of the conditions?being in a quasi-residential or commercial area near a transit station, a central transit station area, or adjacent to a main road at least 20 meters wide?zoning changes from second- or third-class residential to quasi-residential are now permitted.

An industry official said, "Abnormal conditions are being produced in terms of rent and options, making it difficult for youth to live satisfactorily. Instead of blindly expanding supply to meet targets, policies genuinely aimed at benefiting youth should be considered."

This content was produced with the assistance of AI translation services.