SH Corporation to Purchase 7,500 Public Jeonse Rental Units for Lease within the Year

Seoul Dongjak-gu Heukseok 2 District view. Photo by Mun Ho-nam munonam@

[Asia Economy Reporter Onyu Lim] Seoul Housing and Communities Corporation (SH Corporation) announced on the 3rd that it will purchase 7,500 housing units to provide as purchased rental housing and public jeonse housing in line with the government's 'Support Measures for Housing Stability for Low-income and Middle-class Citizens.'

Purchased rental housing refers to public rental housing supplied by the corporation to homeless Seoul citizens by purchasing private multi-family, row houses, and apartments. The corporation does not purchase already built houses but only purchases contracted houses that meet design standards and rents them at 30-50% of the surrounding market price.

Public jeonse housing is a new rental type announced by the government in November last year. It rents houses with three or more rooms, larger than existing contracted houses, to homeless households for up to six years regardless of assets or income. The jeonse price is about 90% of the surrounding market price.

SH Corporation plans to purchase the 7,500 units planned for this year sequentially, dividing them quarterly at 60%-15%-15%-10%. First, it will purchase 4,347 units of first-quarter purchased rental housing by the 19th of this month.

This year, the elevator installation obligation will be expanded to all types of purchased rental housing. Previously, elevators were only required for newlywed couple housing or buildings with six or more floors, but from this year, buildings with fewer than six floors must also install elevators.

Operators wishing to sell housing must submit a sales application, including design documents, by registered mail during the application period. If the purchase is decided, the process proceeds by building the house, obtaining usage approval, and then signing the sales contract. SH Corporation will ease the financial burden on private developers by paying the total purchase price in 3 to 4 installments according to the construction progress.

Detailed information on purchase standards by type, purchase prices, procedures, and more can be found in the purchase announcement posted on the SH Corporation website.

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