This Year, 45,000 Purchased Rental Housing Units Supplied... Largest Volume Ever

Supply Volume Increased by Over 60% Compared to Last Year
21,000 Units Through New Purchase Agreement Method
Support Available for High-Income Newlyweds
14,500 Youth Purchase Rental Housing Units Supplied

Interior of a duplex unit in the Dongtan public rental housing complex, commemorating 1 million LH rental housing units in Hwaseong-si, Gyeonggi Province

[Asia Economy Reporter Moon Jiwon] The Ministry of Land, Infrastructure and Transport announced on the 6th that it plans to supply a total of 45,000 purchase rental housing units for low-income households this year.

The target volume of 45,000 units this year represents an increase of more than 60% compared to last year's supply performance (28,000 units), marking the highest annual supply target since the purchase rental housing project began in 2004.

Purchase rental housing refers to housing that public housing providers such as Korea Land and Housing Corporation (LH) purchase existing houses, remodel them, and then rent them out at affordable prices.

This year's target volume will be secured through ▲new construction purchase agreements ▲public remodeling ▲existing housing purchase methods.

New construction purchase agreements involve a method where a public housing provider contracts in advance to purchase houses built by private developers after completion. This year, 21,000 units will be supplied, a 75% increase compared to last year's 12,000 units.

To expand the supply of newly constructed medium-sized houses (60?85㎡) that can accommodate households of three to four or more members, incentives such as priority supply of public land and additional points will be provided to developers who supply a certain number of houses through purchase agreements. Additionally, special guarantee contracts to ease developers' burdens will be newly established.

Public remodeling involves supplying housing by majorly repairing or demolishing and rebuilding old houses and vacant non-residential buildings (such as commercial buildings and tourist hotels). The advantage is that it allows for new housing supply and improvement of the urban environment.

The public remodeling supply target for this year is 8,000 units. Tourist hotels and other buildings exceeding residential floor area ratios were previously unable to be converted for residential use due to differences in floor area ratios, but from the second quarter of this year, legal amendments are being pursued to allow supply as public remodeling housing.

For the existing housing purchase method, 16,000 units are planned to be supplied. This method involves public housing providers purchasing houses that have received completion permits from licensing authorities, renovating them, and supplying them to low-income households. It is characterized by rapid supply.

(Data from the Ministry of Land, Infrastructure and Transport)

Purchase rental housing is supplied to homeless households, selecting tenants based on income and asset criteria.

From this year, a 4th priority category for newlyweds II has been established to allow higher-income newlywed couples to move in. The income requirement is relaxed from 100% (120% for dual-income) of the average monthly urban worker income to 120% (140% for dual-income), and the asset requirement increases from total assets of 288 million KRW to 303 million KRW.

Considering the increased minimum income standards and income growth due to the rising average age of 1- and 2-person households, income criteria for these households have also been partially relaxed. For 1-person households, the income requirement is raised by 20 percentage points, and for 2-person households by 10 percentage points, enabling more young people, elderly, and newlyweds to move into purchase rental housing.

Also, previously, multi-child households did not include grandparent households raising two or more grandchildren as eligible tenants, but from this year, grandparent-grandchild households with two or more minors under civil law can move into multi-child purchase rental housing.

The number of contract renewals for elderly tenants living in purchase rental housing has been expanded from the existing 9 times to unlimited, allowing them to live comfortably without the burden of moving.

(Data from the Ministry of Land, Infrastructure and Transport)

Youth purchase rental housing will supply 14,500 units, including 1,500 dormitory-style youth housing units.

Applicants must be homeless, unmarried university students, job seekers within two years after graduation, or youth aged 19 to 39.

Residents of youth purchase rental housing and dormitory-style youth housing can live at rent levels below 50% of market prices, with deposits ranging from 1 million to 2 million KRW depending on the order of application. Residents can live for up to 6 years.

For newlywed purchase rental housing, 10,000 units of Type I and 5,000 units of Type II will be supplied. These are provided to homeless households consisting of newlyweds within 7 years of marriage (including prospective newlyweds) and married couples with children under 6 years old.

Newlywed Type I applicants must have a monthly average income of 70% (90% for dual-income) or less of the previous year's average monthly income by household size of urban workers. Newlywed Type II applicants must have 100% (120% for dual-income) or less.

Type I is supplied at rent levels below 50% of market prices, allowing residence for up to 20 years. Type II is supplied at rent levels below 80% of market prices, with a basic residence period of 6 years, extendable up to 10 years if children are present.

Since the tenant recruitment requirements for purchase rental housing differ among the 12 public housing providers including LH, it is necessary to carefully review them in advance.

Details on supply areas, eligibility, and application schedules by type can be found in announcements posted on each public housing provider's website.

Jung Suho, head of the Public Housing Support Division at the Ministry of Land, Infrastructure and Transport, emphasized, "We will continue to develop the purchase rental housing project so that young people do not give up their dreams due to housing instability, newlyweds do not give up childbirth, and the elderly do not worry about moving."

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