Expansion of Lottery System for Regulated Areas Under 85㎡... Increasing Opportunities for Homeless Youth

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[Asia Economy Reporter Noh Kyung-jo] The subscription method for housing units under 60㎡ exclusive area in speculative overheated districts and regulated areas will be improved to 40% by point system and 60% by lottery system. The current ratios are 100% point system and 75% point system with 25% lottery system, respectively. The residency requirement for the area will also be abolished for non-priority subscriptions. The reserve tenant ratio will be expanded from the original 40% or more to over 500%.

The Ministry of Land, Infrastructure and Transport announced on the 14th that it will give a 40-day legislative notice starting from the 16th on the "Amendment to the Housing Supply Regulations," which partially reforms the subscription system. This is a follow-up measure to the "Plan to Supply 500,000 Public Housing Units for Youth and Low-income Housing Stability" announced last October and the "Real Estate Market Issue Response Plan" released last month.

Major Contents of Subscription System Reform / Provided by Ministry of Land, Infrastructure and Transport

This system reform aims to expand homeownership opportunities for real demanders by age and class, and to partially relax the qualification requirements for non-priority subscriptions considering the recent interest rate hike trend and real estate market conditions.

Currently, the point system ratio is high for small and medium-sized houses under 85㎡ exclusive area in regulated areas, making it difficult for young people with fewer dependents and shorter periods of being homeless to attempt homeownership.

Accordingly, the Ministry plans to increase the lottery system ratio for houses frequently sought by young households and expand the point system for large houses (over 85㎡ exclusive area) preferred by middle-aged and older households to meet demand.

The improvement plan adjusts the point system and lottery system ratios to 40% and 60%, respectively, for subscriptions to houses under 60㎡ exclusive area in both speculative overheated districts and regulated areas. Houses over 60㎡ up to 85㎡ exclusive area will change to 70% point system and 30% lottery system. For houses over 85㎡ exclusive area, the ratio will be 80% point system and 20% lottery system in speculative overheated districts, and 50% each in regulated areas.

The point system and lottery system ratios in non-regulated areas remain the same as before. For houses under 85㎡ exclusive area, local governments can decide the point system ratio up to 40%, and houses over 85㎡ exclusive area are 100% lottery system.

The Ministry also decided to abolish the existing residency requirement for non-priority subscriptions to expand winning opportunities for applicants waiting to move to other areas. This considers the ongoing occurrence of non-priority subscriptions due to recent interest rate hikes and housing price declines.

The reserve tenant ratio will also increase from 40% or more to over 500%. The disclosure period for the list will be extended from 60 days to 180 days to minimize non-priority subscriptions.

Kwon Hyuk-jin, Director of the Housing and Land Office at the Ministry, said, "Through this subscription system reform, we expect to increase opportunities for real demanders to secure housing according to age and proactively respond during the housing market downturn. We will continue to listen to the difficulties of real demanders and institutionalize them."

The amendment can be checked on the Ministry’s website, and opinions can be submitted by mail, fax, or through the website.

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