Won Hee-ryong "Expanding Supply of Youth-Specialized Housing in Station Areas by Increasing Floor Area Ratio"

The government announced that it will increase the floor area ratio for youth-specialized purchase rental housing to sufficiently supply in urban areas near subway stations.

On the afternoon of the 29th, Won Hee-ryong, Minister of Land, Infrastructure and Transport, visited 'Arts Stay Yeongdeungpo' in Yeongdeungpo-gu, Seoul, to hold a communication meeting with resident youths. / Photo by Noh Kyung-jo

On the 29th, Won Hee-ryong, Minister of Land, Infrastructure and Transport, visited 'Arts Stay Yeongdeungpo' in Yeongdeungpo-gu, Seoul, and met with resident youths. He said, "We will raise the floor area ratio further for officetels and residential hotels supplied in urban areas when linked with purchase rental housing, if they are used for youth housing purposes."

Arts Stay Yeongdeungpo was purchased and remodeled by Korea Land and Housing Corporation (LH) from an existing tourist hotel (basement 2 floors to 17 floors above ground) for 12.7 billion KRW. It targets youths aged 19 to 39 with an average monthly income of 100% or less of urban worker households. Rent is set at 50% or less of market price, and residents can stay for up to 10 years. The operation is managed by a private company called 'Antenna.'

The youths attending the meeting generally expressed satisfaction with Arts Stay Yeongdeungpo. However, they mentioned that although the common area is large, resulting in low monthly rent, the maintenance costs are high, and there is inconvenience in sharing kitchen and laundry facilities.

They also freely shared their opinions on the government's youth housing supply policy. One resident youth said, "Youths can be divided into university students and workers. When limited to Seoul, universities are usually located near subway Line 2 stations, and workplaces are in key areas such as Gangnam, Yeouido, and Euljiro. However, these areas lack sufficient supply. Even if the rent is not always cheap, it seems important to supply housing in locations with good accessibility."

The Ministry of Land, Infrastructure and Transport said it is considering supply near subway stations and emphasized that it will diversify supply according to the preferences of the MZ generation (born early 1980s to early 2000s). Minister Won said, "Young people find it difficult not only to buy a home but also to secure a safe living space immediately due to costs and other issues. Urban areas cannot increase building height excessively due to concerns about overcrowding, school burdens, and parking, but for youth housing purposes, we will raise the floor area ratio further and provide additional funds to local governments."

LH President Lee Han-jun also said, "As you know, subway station areas have high rents, and LH has focused on supplying affordable housing, which may have been somewhat disconnected from the needs of demanders. We will focus more on quality than quantity and improve resident satisfaction through facilities and locations with good accessibility."

Another resident youth said, "It is necessary to provide guidance on various public housing options such as New:Home so that youths can prepare for life after the rental period ends and move toward homeownership." New:Home is the new name for public sale housing under the Yoon Suk-yeol administration, aiming to supply 500,000 households during the term. In response, President Lee highlighted that youth housing can play a virtuous cycle role as a 'housing ladder' and recommended visiting the New:Home promotional center.

Minister Won said, "It is difficult to adapt to the changing world, circumstances, and styles with only bureaucratic methods such as existing public sales and rentals. I hope that the resources, finances, management know-how, and administrative capabilities held by LH and the government will combine with the private sector's creative ideas to develop youth housing spaces."

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