From September, More Than Half of Sales Will Be 'Special Supply'

Expanding Homeownership Opportunities for Young Adults
Introducing First-Time Special Supply in Private Housing

Middle-Aged Group Voices 'Reverse Discrimination' Complaints
"40s Non-Homeowners Urgently Need Homes"

30s Also Skeptical
"Supply for Special Class of Gold Spoon Generation"

[Asia Economy Reporter Lee Chun-hee] Starting from September, the proportion of special supply for first-time homebuyers in apartment sales will be expanded. As the amount of special supply increases, the amount of general supply decreases, leading to controversy over 'reverse discrimination' against the 4050 generation, who face reduced chances of winning.

On the 29th, the Ministry of Land, Infrastructure and Transport announced a legislative notice for partial amendments to the 'Housing Supply Regulations' and the 'Public Housing Special Act Enforcement Regulations' as follow-up measures to the July 10 real estate policy. These include the establishment of special supply for first-time buyers in private housing and the relaxation of income criteria for newlywed special supply.

This amendment is a supplementary measure following the introduction of a 100% subscription point system for 'national housing size' homes of 85㎡ (exclusive area) or less in speculative overheated districts such as Seoul, and the expansion of the point system ratio to 50% for homes exceeding 85㎡. The purpose is to expand homeownership opportunities for young people who have almost no chance of winning under the point system.

There has been analysis that the so-called 'Cheongpo-jok (subscription quitters)' in their 30s, who find it difficult to win due to the point system, have turned into active homebuyers, leading to a 'panic buying' phenomenon that drives up housing prices. According to the Korea Real Estate Board on the 29th, among the total 48,928 apartment sales transactions in Seoul in the first half of this year, those in their 30s accounted for 15,015 transactions (31.1%), the largest proportion.

The Ministry of Land, Infrastructure and Transport has repeatedly explained that 'people in their 30s make up the largest proportion of winners through special supply,' but it appears they responded due to continued critical reactions from market participants.

Once this amendment is implemented, the current ratio of general supply to special supply in private housing, which was 57 to 43, will be instantly reversed. Although the proportion of other special supplies is not adjusted, the first-time special supply, which had only applied to national housing, will be introduced to private housing as well. In particular, for private housing built on public land, a new special supply allocation of 15% will be assigned, increasing the special supply proportion to 58%.

The 4050 Generation Complains of 'Reverse Discrimination'... The 2030 Generation Laments 'Gold Spoon Subscription'

Amid this expansion policy, middle-aged and older generations have voiced complaints of reverse discrimination. On real estate communities, comments such as "The government said it would supply through the point system, so I was diligently accumulating points, but what is this?" and "Isn't it more urgent for 40-something non-homeowners to secure a home than 30-something non-homeowners? The government is only stirring up generational conflict" have been raised.

Those in their 30s, considered the main beneficiaries of the new policy, share similar dissatisfaction. While welcoming the easing of the government's excessive point system implementation, there is also a skeptical view that special supply is a provision only for 'special classes.' This is because, with the median price of apartments in Seoul reaching 918.12 million KRW (KB Kookmin Bank) and housing prices soaring, it is difficult to purchase a home without parental support.

In particular, unlike the first-time special supply, which has asset criteria requiring real estate assets to be 215.5 million KRW or less and vehicle value to be 27.64 million KRW or less, the newlywed special supply has no separate asset requirements. Although the government expanded the eligibility for newlywed special supply applications to households earning up to 140% of the previous year's urban worker average monthly income, 75% of the supply is still preferentially allocated to households earning 120% or less. This has led to criticism that the system favors 'gold spoon' households with low income but high assets.

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