Supply of 114,000 Rental Housing Units by 2022

[Asia Economy Reporter Inho Yoo] The government will supply 114,000 rental housing units by 2022.

The Ministry of Economy and Finance, the Ministry of Land, Infrastructure and Transport, and other government agencies announced on the 19th at the Real Estate Market Inspection Meeting held at the Seoul Government Complex a plan to support housing stability for low-income and middle-class households by supplying 114,000 housing units nationwide by 2022.

The government explained that the background for this plan is that, since 300,000 households in the metropolitan area will only begin to move in after 2023, urgent measures are needed to meet the rapidly increasing recent demand for jeonse (long-term lease) due to low interest rates, changes in population and household structure, and balanced contraction.

This is a short-term supply expansion plan focused mainly on new construction to resolve the current jeonse shortage.

Accordingly, a total of 114,000 jeonse-type housing units (70,000 in the metropolitan area) will be additionally supplied from 2021 to 2022. In particular, by the first half of 2021, 49,000 units nationwide, which is more than 40% of the total supply, including 24,000 units in the metropolitan area, will be concentratedly supplied.

Korea Land and Housing Corporation (LH) and others will promptly supply 39,000 public rental units (16,000 in the metropolitan area) that have been vacant for more than three months according to current standards. The remaining vacancies will be converted to jeonse and recruitment for tenants will begin by the end of December, allowing move-in by February next year.

About 7,000 units (6,000 in the metropolitan area) will be supplied through new construction purchase agreements, and 3,000 units (2,500 in the metropolitan area) of newly introduced public jeonse housing will also be supplied in the first half of next year.

For new construction purchase housing, private construction companies will build the agreed number of units, which LH will purchase and utilize as public jeonse. Considering the characteristics of jeonse residents who are hopeful for rental housing without home ownership, income and residency requirements will be relaxed.

In the second half of 2021, housing units totaling 26,000 (19,000 in the metropolitan area) will begin to be supplied by remodeling vacant commercial spaces, offices, and lodging facilities into residential spaces.

For the first time, 6,000 units (4,600 in the metropolitan area) will be supplied through vacancy remodeling, and move-in will be possible for 14,000 units (10,000 in the metropolitan area) under new construction purchase agreements and 6,000 units (4,000 in the metropolitan area) of public jeonse housing.

In 2022, a total of 38,000 rental housing units will be supplied, including 23,000 units (17,000 in the metropolitan area) through new construction purchase agreements, 9,000 units (6,500 in the metropolitan area) of public jeonse housing, and 7,000 units (5,000 in the metropolitan area) through vacancy remodeling. This will achieve the goal of supplying an additional 114,000 rental housing units over two years.

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