Introducing Public Rental Housing Without Distinguishing Building and Unit Numbers

Social Mix Public Rental Supply in Large Brand Apartments in the Second Half of This Year

[Asia Economy Reporter Kangwook Cho] From the second half of this year, fully integrated social mix public rental housing without distinction between building and unit numbers will be supplied within large brand apartment complexes. Unlike existing rental apartments that are constructed as separate buildings within the same complex, the new public rental housing will be built indistinguishably from sale apartments in terms of buildings, lines, and even finishing materials.

The Ministry of Land, Infrastructure and Transport announced on the 25th that it has issued an administrative notice for the revision of the "Land Development Business Processing Guidelines," which stipulates detailed provisions for supplying such social mix public rental housing in land development projects.

Previously, in November last year, the Ministry announced the "Improvement Plan for the Supply System of Apartment Sites," stating that when selling apartment sites to the private sector in land development and public housing projects, the rental housing supply plan would be evaluated and priority would be given to excellent companies. Accordingly, branded construction companies will supply public rental housing alongside sale apartments on private apartment sites. Rental housing built by private construction companies will be purchased as public rental housing by project implementers such as LH. The public rental housing to be purchased will be selected by random lottery before recruiting tenants for the private sale apartments. This will result in a mix of sale and rental housing in the same building and line, including small units as well as medium-sized rental units around 30 pyeong (approximately 99 square meters).

Although the income criteria for public rental tenants have not yet been finalized, the Ministry is considering broadly applying income standards to include the middle class. The government is currently promoting "integrated rental housing," which merges detailed types of public rental housing such as Happy Housing, permanent rental, and national rental. Income criteria have been relaxed in this integrated rental housing to include the middle class. For social mix public rental housing, the income criteria are likely to be higher than those for integrated rental housing. The Ministry also plans to establish evaluation criteria such as the minimum ratio of rental housing to be supplied by construction companies.

The Ministry plans to finalize the new land supply system in the first half of the year, conduct a public offering in the second half, and select target companies by the end of the year. Accordingly, social mix public rental housing on private apartment sites using this method is expected to be supplied in the 3rd phase new towns as well.

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