Seoul Jung-gu Tourist Hotel Rent Prices to Change 50% into Youth Public Rental Housing

Application for Non-Residential Remodeling Public Housing Project... Supplying Public Housing to Single Youth Households at Less Than 50% of Market Price

[Asia Economy Reporter Jongil Park] Jung-gu, Seoul (Mayor Seoyangho) announced on the 31st that a local tourist hotel has applied for the non-residential remodeling project led by Korea Land and Housing Corporation (hereinafter LH).

Non-residential remodeling is a project under the government's 2.4 real estate policy as one of the short-term housing supply expansion measures, where office and lodging facilities in urban areas are remodeled into housing, then purchased by LH and supplied as public rental housing to single young households at less than 50% of the surrounding market price.

Jung-gu accounts for only 1.65% of the total area of Seoul but has the largest number of tourist hotel rooms. These local tourist hotels have been struggling with business due to the prolonged COVID-19 pandemic, and as of March, nearly 70% have chosen or are considering temporary closure or shutdown.

Also, many people commuting to downtown Jung-gu, such as Myeongdong and Euljiro, live in the outskirts of Seoul or Gyeonggi Province and cannot move closer to their workplaces due to high housing prices.

To solve these problems, Jung-gu has turned its attention to tourist hotels facing management difficulties as a new way for young people to secure affordable housing near their workplaces.

This public contest project utilizes the characteristics of Jung-gu, which has many tourist hotels, to achieve supply effects in a short period using existing buildings, making it an ideal policy to provide housing close to work for the youth.

The district has actively encouraged participation in the project among about 200 tourist hotels in the area. In February, a business briefing session was held for hotel industry stakeholders, confirming strong interest from the industry.

Additionally, through continuous collaboration with the 'Social Housing Association,' a non-profit organization working to promote public housing, Jung-gu has played a pivotal role as a bridge connecting hotel owners and project implementers.

As a result, a consortium was formed with the project implementer under the concept of artist youth housing, and the application was submitted. It is expected that if LH selects the project as a final purchase target after preliminary and main evaluations in April, Jung-gu's first 'housing conversion public rental housing' will be born.

Seoyangho, Mayor of Jung-gu, said, "This contest project provides an opportunity for both the struggling tourism lodging industry due to COVID-19 and the youth who cannot live in the city center due to high housing prices to achieve a win-win." He added, "If the government eases related regulations, hesitant hotels will actively participate in the project, further revitalizing the supply of public housing."

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