Gyeonggi Housing and Urban公 "Basic Housing Will Minimize Rent with Monthly Rent Structure"

[Asia Economy (Suwon) = Reporter Lee Young-gyu] GH (Gyeonggi Housing and Urban Corporation) stated that the "Rental Income Ratio (RIR) 20%" proposed as the rent for the 'Gyeonggi-do Basic Housing' is an upper limit.

On the 29th, GH clarified through additional explanatory materials prepared to enhance understanding of the basic housing rent, saying, "The rent for basic housing is set at a cost level where public project operators can achieve economic sustainability," and emphasized, "Public project operators do not gain additional profits."

GH added, "Regarding the rent for basic housing, the previously announced RIR 20% is not a standard but an upper limit," and "The actual rent will be decided at a lower level that covers the management and operation costs of rental housing."

GH plans to set rents at a level that consumers can sufficiently afford to realize universal housing services.

For rental deposits, 1-2 person households are calculated as 50 times the monthly rent, and 3-5 person households as 100 times the monthly rent.

Additionally, rent varies depending on location, size, and complex scale.

Assuming the cost of developing rental housing land is 20 million KRW per pyeong and based on a complex of 1,000 units of the same size, GH stated that the actual rent is expected to be 280,000 KRW for a single-person household, 570,000 KRW for a four-person household, and 630,000 KRW for a five-person household.

The reason the RIR is highest for single-person households is that their income level is relatively low, making the rent-to-income ratio higher.

GH expects the rent increase cap to be around 3% every two years, but also foresees the possibility of further rent reductions if costs are cut and operations are made more efficient.

Lee Heon-wook, CEO of GH, explained, "There are opinions that it would be better to increase the deposit and lower the monthly rent, but since basic housing is structured to balance costs and income to cover costs, converting monthly rent into deposits makes it difficult to cover costs," adding, "Please understand that the initially introduced basic housing was developed with a focus on monthly rent, and since basic housing operates as a non-profit structure without generating profits through rental housing management, if there is any surplus, it will be returned to tenants as additional benefits."

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