[2020 National Audit] Number of Rental Houses Unclaimed by Owners for Over a Year Increased Tenfold

[Image source=Yonhap News]

[Asia Economy Reporter Lee Ji-eun] Over the past four years, the number of construction rental housing units in the Seoul metropolitan area that have remained vacant for more than one year has increased tenfold.

According to an analysis of the National Assembly Land, Infrastructure and Transport Committee member Song Eon-seok of the People Power Party, based on data submitted by the Korea Land and Housing Corporation on the 8th for the national audit, the number of construction rental housing units managed by the Korea Land and Housing Corporation in the Seoul metropolitan area that have remained vacant for more than one year has surged more than tenfold in the past four years.

According to the data, the number of construction rental housing units nationwide that have been vacant for more than one year increased more than fourfold from 2,477 units in 2016 to 9,956 units as of the end of August 2020. By region, the Seoul metropolitan area increased from 243 units to 2,477 units, a tenfold increase, while non-metropolitan areas increased more than threefold from 2,234 units to 7,479 units. This means that the number of rental housing units vacant for more than one year is increasing faster in the Seoul metropolitan area than in non-metropolitan areas.

By region, Ulsan recorded the highest increase with a 33.0-fold rise (from 8 units to 264 units). This was followed by Gyeongnam with a 28.6-fold increase (36 units to 1,030 units), Daegu with a 15.7-fold increase (28 units to 439 units), Gyeonggi with an 11.4-fold increase (214 units to 2,430 units), Sejong with a 10.3-fold increase (20 units to 206 units), and Busan with a 9.7-fold increase (60 units to 583 units).

The longest-vacant construction rental housing unit in the Seoul metropolitan area is located in Pyeongtaek Sosabeol 2 Complex, which has remained unoccupied for over 7 years and 11 months (2,871 days). In particular, the vacant rental housing units in Pyeongtaek Sosabeol 2 Complex total 159 units, accounting for 20.8% of the entire complex (765 units). This means that one out of every five units in the complex is vacant.

By cause of vacancy, 'lack of infrastructure and peripheral urban location' accounted for the largest proportion at 28.5% (2,834 units). This was followed by 'oversupply in nearby areas' at 24.5% (2,438 units), 'unpopularity' at 20.6% (2,048 units), 'high rental conditions' at 7.2% (715 units), 'defects such as leaks' at 5.5% (551 units), facility aging at 4.7% (469 units), and regional economic downturn at 4.0% (403 units).

Meanwhile, the total number of applicants waiting to move into construction rental housing in the Seoul metropolitan area is 27,809, with an average waiting period of 11.6 months. In non-metropolitan areas, the total number of applicants is 32,688, with an average waiting period of 5.9 months.

Assemblyman Song said, "Rental housing built without considering living conditions in a rush to meet performance targets is not only shunned by consumers but also causes serious waste of national finances," adding, "Efforts must be made to supply rental housing where citizens can live comfortably, not for the convenience of policymakers."

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