In Their 30s: "Minister Kim Hyun-mi, 'Don't Go All-In'? You Don't Even Qualify for Special Housing"

Minister Kim's "Wait for Pre-Sale, Not Yeongkkeul" Remark Sparks Buzz Among 30s
Anger Grows Among Dual-Income Couples Ineligible for Special Supply and Single-Person Households Excluded from Subscription System

[Image source=Yonhap News]

[Asia Economy Reporter Onyu Lim] 'Special supply for newlyweds and first-time homebuyers is also an insurmountable wall.'

Minister of Land, Infrastructure and Transport Kim Hyun-mi's remark, "Don't buy a house by 'Yeongkkeul' (meaning gathering money to the last penny), wait for the pre-sale," has once again come under scrutiny. The intention was that it is better to wait for the supply volume to be offered through the 3rd New Town or the 8.4 supply plan including Taereung Golf Course, but among young people, there has been continuous criticism that it is an irresponsible comment without considering subscription qualifications.

According to the National Assembly on the 1st, Minister Kim said at the National Assembly Land, Infrastructure and Transport Committee the day before, "Waiting for the supply volume to be offered and then buying is more helpful in the long term than buying a house right now by Yeongkkeul."

In the industry, there is criticism that due to realistically strict subscription qualifications, homeownership through pre-sale is still a narrow door for people in their 30s.

The government recently established a special supply for first-time homebuyers in private housing as criticism that people in their 30s are marginalized in the subscription market continued.

Also, to expand special supply opportunities for newlyweds, the income criteria will be relaxed. Currently, in private housing, newlyweds qualify for special supply if their income is 120% (130% for dual-income) or less of the previous year's average monthly urban worker income. The relaxation plan raised this by 10 percentage points to 130% (140% for dual-income) for newlyweds purchasing a home for the first time when applying for newlywed hope towns or private housing priced at 600 million KRW or more.

However, the industry analyzes that despite some relaxation of income requirements, the chances of winning the subscription do not increase significantly. For a two-person household, the income criterion (140%) is 6.13 million KRW per month (equivalent to 73.56 million KRW annually), but the average monthly income of most dual-income college graduate couples exceeds this. The same applies even to mid-sized companies. According to the Ministry of Trade, Industry and Energy's '2019 Mid-sized Company Survey,' the average annual salary of a college graduate new employee at a mid-sized company in 2018 was 32.82 million KRW. In other words, dual-income couples in their 30s who have the financial capacity to purchase a home do not meet the income criteria.

A dual-income couple, Mr. A, who recently purchased an apartment in Mia-dong, Gangbuk-gu, Seoul, said, "If it were possible to win the subscription, wouldn't we wait?" adding, "Since house prices have risen so much, it's better to buy an old house with debt and secure a home."

For single-person households, homeownership through subscription is impossible. This is because the special supply for first-time homebuyers requires the condition of being married or having unmarried children.

The lottery system is the only method, but all units under 85㎡ are allocated by a point system, making the chance of winning slim. In fact, Real Today analyzed the lowest winning scores (cutoff points) of 12 complexes offered in Seoul in July and August this year, and the average was 62.7 points. Even if one fulfills two dependent family members (15 points), more than 10 years of no homeownership (22 points), and more than 15 years of subscription account membership (17 points), the total is only 54 points, so the possibility of winning a subscription in Seoul for people in their 30s is virtually gone.

Mr. B, a single person in his late 30s, said, "There is no lottery system for small and medium-sized units at all," adding, "No matter how much the supply volume is increased or income conditions relaxed, single-person households have no way to secure a home through subscription."

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