[2022 National Audit] Oh Se-hoon "Sympathize with Negative Evaluation of Youth Transit-Oriented Housing... Urgent Measures Needed"

October 14 National Assembly Land, Infrastructure and Transport Committee Seoul City Hall Audit

Seoul Mayor Oh Se-hoon is attending the national audit on Seoul City held on the 12th at the Seoul City Hall Grand Conference Room in Jung-gu, Seoul, responding to questions from lawmakers. Photo by Yoon Dong-joo doso7@

[Asia Economy Reporter Hwang Seoyul] Seoul Mayor Oh Se-hoon expressed sympathy for the negative evaluations of youth transit-oriented housing, such as high rent and small unit sizes, stating that "extraordinary measures are necessary."

At the National Assembly Land, Infrastructure and Transport Committee's audit held at Seoul City Hall on the 14th, Mayor Oh responded to criticisms that the rent for youth transit-oriented housing is higher than market prices and that newlywed couples have a high contract cancellation rate by saying, "I strongly agree," and added, "I will ensure that the responsible officials pay special attention to this."

According to an analysis of data on youth transit-oriented housing (focused on publicly supported private rental housing) submitted by Seoul City to Assemblyman Heo Young of the Democratic Party, a member of the National Assembly Transportation Committee, the average exclusive area of 28 youth transit-oriented private rental housing complexes (including supply for newlywed couples) was 7.9 pyeong (approximately 26.1 square meters), with an average deposit of 54.2 million KRW, monthly rent of 550,000 KRW, and maintenance fees of 104,000 KRW.

Assemblyman Heo explained, "The combined monthly rent and maintenance fees amount to over 650,000 KRW on average, which is about one-quarter of the pre-tax average income of 2.64 million KRW for a single-person urban worker household as of 2020."

Furthermore, when comparing the rent of seven complexes to the surrounding market prices for similar-sized units or officetels under similar conditions, it was found that the rent for most youth transit-oriented housing complexes was higher. For example, the rent for youth transit-oriented housing near Chungjeongno Station in Seodaemun-gu was about 3.64 million KRW deposit and 340,000 KRW monthly rent, whereas the surrounding market price was about 3.5 million KRW deposit and 320,000 KRW monthly rent.

Assemblyman Heo stated, "Despite many special privileges granted to private developers, the rent is higher than market prices," adding, "I believe this undermines the original purpose of youth transit-oriented housing."

Source: Office of Heo Young, Democratic Party of Korea

He also pointed out that the initial contract cancellation rate for transit-oriented housing for newlywed couples reaches about 26%. Assemblyman Heo explained, "Although these are housing units for newlywed couples, the units are small and the rent and maintenance fees are high, leading to contract cancellations." He further added, "There needs to be a standardized guideline for the varying maintenance fees."

Mayor Oh responded, "Since I was active in the local constituency before taking office, I am well aware of the public's evaluation of youth transit-oriented housing," and stated, "After taking office, I conveyed the negative perceptions about youth housing to the officials in charge of the Housing Policy Office and repeatedly encouraged them to increase unit sizes and lower prices."

He continued, "Nevertheless, because incentives are given to landowners to supply more units to young people facing housing difficulties, the benefits provided to youth ultimately fall short of the initial policy goals," and added, "I believe extraordinary measures are needed to resolve this."

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