[Practical Finance] Newlywed Special Supply 30% to Become General Supply from Next Year... Worth Trying the Lottery

Relaxation of Income Criteria for First-Time Special Supply with General Supply Below 130% of Monthly Average

[Asia Economy Reporter Donghyun Choi] From this month until the end of the year, 13,787 public sale apartments supplied by the government will be offered in the Seoul metropolitan area, and 2,592 units will be available in other regions. In 2021 and 2022, public sales through preliminary subscription are also planned with 30,000 units each year in the metropolitan area alone. Among the public sale units, 85% are allocated as special supply, and 55% of these are reserved for newlyweds and first-time homebuyers, giving relatively young home seekers a higher chance of winning. In particular, since the government recently relaxed subscription requirements such as income criteria for these groups, it is worth rechecking eligibility even for genuine demanders who were not previously eligible for special supply.

The newlywed special supply for public sale housing is a subscription option available to newlywed couples married within seven years. The marriage date is based on the date of the marriage registration, and applicants must also meet requirements such as having a subscription savings account for at least six months, being without a home, and meeting certain income and asset criteria.

However, the government recently announced plans to revise related income criteria and supply methods, to be implemented around January next year, which is expected to widen access to subscriptions. Currently, the public sale newlywed special supply is available to those with an annual income at or below 100% of the previous year's average monthly urban worker income (120% for dual-income households), and unlike private sales, there is no distinction between 'priority supply' and 'general supply.' Going forward, 70% of the units will be allocated as priority supply, and the remainder as general supply. The income criteria for priority supply remain the same, but for general supply, the threshold will be relaxed to 130% of the average monthly income (140% for dual-income households). For a family of three or fewer, this means that those earning up to 8.89 million KRW per month, or an annual salary exceeding 100 million KRW, can apply. According to the government, this relaxation will enable 92% of newlywed households without homes to qualify for special supply.

Currently, the public sale newlywed special supply selects winners based on a point system, but from next year, a lottery system will be applied only to the general supply. In the priority supply point system, three points are awarded for three or more minor children, two points for two children, and one point for one child. Regarding marriage duration, three points are given for three years or less, two points for three to five years, and one point for five to seven years.

Additionally, points are awarded up to three points each for subscription savings payment frequency and local residence period, with a bonus point added if the household's average monthly income is 80% or less, making the maximum score 13 points. The cutoff score for public sales in the metropolitan area is usually around 11 to 12 points. In the event of a tie, factors such as local residence and number of minor children are considered, and if still tied, winners are selected by lottery.

The life-first special supply requires that applicants have never owned a home before. Not only the head of the household but also all household members must have no experience owning a pre-sale right. However, an exception is made if a direct ascendant aged 60 or older owns a home. Applicants must have children whether married or divorced. There is also a requirement to have worked for at least five years as an employee or self-employed, excluding social newcomers. Winners are selected 100% by lottery, making this option preferred by newlywed couples with scores below 11 points.

The current income criteria for the public sale life-first special supply are the same as those for the newlywed special supply. However, this criterion will also be subdivided into priority and general supply around January next year. Priority supply, which accounts for 70% of the allocation, will maintain the current threshold of 100% or less of the previous year's average monthly urban worker income (single income), while the general supply will expand eligibility to those earning up to 130% (single income). For public sales, the income criteria and allocation ratios for the two special supplies will thus become identical.

Another noteworthy point is the Newlywed Hope Town. This is a public housing type specialized for newlywed couples, reflecting their needs such as childcare and nursing, with 150,000 units planned to be supplied by 2022. Currently, the income requirement for Newlywed Hope Town is basically 120% or less of the previous year's average monthly urban worker income (130% for dual-income households). If the sale price is 600 million KRW or more and it is the first home purchase in life, an additional 10 percentage points are added. However, through future system improvements, the income threshold will be unified to 130% (140% for dual-income households) regardless of sale price.

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