Seoul City to Supply 70,000 Long-term Jeonse Houses Including Sangsaeng Housing by 2026

Selected 10 Candidate Sites for 'Sangsaeng Housing' in June
Initiating Preparation for Sangsaeng Housing Supply Including Ordinance Enactment
Meaning of 'Sangsaeng' Among Public, Citizens, and Landowners
Swift Progress Aiming for First Supply in 2025
80% of Surrounding Market Price, Extension Possible

[Asia Economy Reporter Hwang Seoyul] The Seoul Metropolitan Government plans to supply a new supply model of long-term lease housing called 'Sangsaeng Housing,' which recorded a competition rate of up to 200:1 in the tenant recruitment last May.

On the 7th, Seoul announced that it has completed the selection of candidate sites for 'Sangsaeng Housing,' an upgraded model of existing long-term lease housing, and has begun full-scale preparations for supply, including ordinance enactment. The city plans to supply 70,000 units of long-term lease housing, including Sangsaeng Housing, by 2026.

Last May, the city called for applications for the 'Sangsaeng Housing' project, which involves building houses on private land and providing them as long-term lease housing. A total of 22 sites applied, and in June, the city selected 10 final candidate sites from among them. Currently, procedures such as project review and mutual consultation are underway for each site. A city official explained, "To overcome the limitation of the lack of new sites in Seoul, we planned Sangsaeng Housing, where public and private sectors cooperate to build houses by actively discovering idle land that private owners have not been able to utilize."

'Sangsaeng Housing' is named to mean a house beneficial to landowners, the public, and citizens alike. According to the city, ▲landowners can lease out sites that had low utilization due to various regulations, ▲the public can supply housing to citizens at affordable rents, and ▲citizens can live stably for a long period without price burdens.

Among the 10 selected sites, 3 to 4 sites where cooperation with the private sector is proceeding smoothly will be pilot projects where the Seoul Housing and Communities Corporation (SH Corporation) will directly build long-term lease housing. They have already started service contracts for project promotion such as architectural planning. After the land use agreement, they plan to quickly proceed with project permits and construction, aiming to supply the first Sangsaeng Housing units next year. The city will also accept private land applications on an ongoing basis to expand the project.

Currently, long-term lease housing is popular for its advantage of allowing long-term residence with rent at about half the market price in an unstable housing market. In fact, in the 41st tenant recruitment announcement for long-term lease housing conducted by SH Corporation last May, 12,933 people applied for 1,426 units, recording an average competition rate of 9.1:1. Additionally, some complexes such as 'Cheongnyangni Station Harrington Place (201.5:1)' and 'DMC SK View (136:1)' recorded competition rates about 10 to 20 times higher than the average.

Yoo Changsoo, Director of Housing Policy at Seoul City, said, "We will not only supply long-term lease housing but also discover or upgrade new housing supply models to provide housing in various ways."

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