"Newly Built Purchase Rental Tenant Recruitment Shortened by Up to 18 Months... Increasing Housing Supply to Stabilize Market"

Newly Built Purchase Rental, Move-in Procedures Simplified to Advance Move-in by 3 Months
9,100 Units in 3rd New Towns Including Goyang Changneung to be Sold by Next Year
12,000 Public Sale Units in Seoul Metropolitan Area Including Guri Galmae Station Area to be Sold by Next Year

Minister of Land, Infrastructure and Transport Park Sang-woo and Deputy Prime Minister and Minister of Economy and Finance Choi Sang-mok are speaking on the 20th at the construction site of the Korea Land and Housing Corporation (LH) newly built rental housing and Bucheon Daejang 3rd New Town in Bucheon-si, Gyeonggi Province.
[Photo by Ministry of Land, Infrastructure and Transport]

The government is accelerating the supply of newly constructed purchase-rental housing to stabilize the real estate market. The move-in date for these houses will be brought forward by three months, and the recruitment period for purchase-rental housing with a sale conversion option will be shortened by 18 months. This aims to alleviate the concentration of demand on apartments caused by the aftermath of jeonse fraud.

On the 20th, Choi Sang-mok, Deputy Prime Minister and Minister of Economy and Finance, Park Sang-woo, Minister of Land, Infrastructure and Transport, and Lee Han-jun, President of Korea Land and Housing Corporation (LH), visited newly constructed purchase-rental housing in Bucheon, Gyeonggi Province, and the construction site of Bucheon Daejang 3rd New Town to announce these measures.

The Ministry of Land, Infrastructure and Transport (MOLIT) will shorten the actual move-in date for newly constructed purchase-rental housing by about three months. They will disclose the recruitment plans, including location and floor plans, to prospective tenants more quickly and simplify the move-in procedures.

For the sale conversion type, tenant recruitment will be conducted 18 months earlier. Newly constructed purchase-rental housing allows for the announcement of tenant recruitment within one or two months after groundbreaking, as the expected completion date is set at the start of construction. The sale conversion type purchase-rental housing refers to homes where tenants can purchase the property after residing for six years.

MOLIT plans to purchase 50,000 units of newly constructed purchase-rental housing, mainly medium-sized units with exclusive areas of 60 to 85 square meters. Apartments will also be included in the purchase volume. Through this, housing will be supplied at affordable prices, approximately 50% to 80% of market prices. Medium-sized purchase-rental housing can be converted to sale after six years. The ministry's purchase target for next year is 110,000 units.

Minister of Land, Infrastructure and Transport Park Sang-woo and Deputy Prime Minister and Minister of Strategy and Finance Choi Sang-mok visited the Korea Land and Housing Corporation (LH) newly built rental housing and the Bucheon Daejang 3rd New Town construction site in Bucheon, Gyeonggi Province on the 20th.
[Photo by Ministry of Land, Infrastructure and Transport]

The acceleration of purchase-rental supply aims to ease the concentration on apartments. Recently, due to jeonse fraud, there has been a noticeable preference for apartments, leading to rising apartment jeonse prices. This is influenced not only by existing apartment demand but also by non-apartment demanders flocking to apartments out of concern for jeonse fraud.

Minister Park said, "Newly constructed purchase-rental housing is LH's Dundeun Housing, so there are no restrictions on eligibility, and there is no risk of jeonse fraud." He also stated, "If we steadily supply housing through the '8·8 Supply Plan' and manage demand appropriately, the market situation will stabilize."

The budget for purchase-rental housing is also expected to increase. Deputy Prime Minister Choi said on the day, "In next year's government budget, the supply volume of public housing such as newly constructed purchase-rental housing will be allocated at a level higher than this year's supply plan of 205,000 units."

Additionally, starting next month, sales for the 3rd New Town will begin with 1,100 units in Gyeyang, Incheon. In the first half of next year, subscription will proceed for 1,800 units in Changneung, Goyang; 1,100 units in Gyosan, Hanam; and 2,000 units in Daejang, Bucheon. In the second half of next year, 3,100 units will be sold in Wangsuk, Namyangju.

Public sales in the metropolitan area outside the 3rd New Town will also proceed. In the second half of this year, 4,000 units will be available in Unjeong 3, Paju, and Cheonggye 2, Uiwang, and next year, about 8,000 units will be offered in areas such as Guri Galmae station area and Juam, Gwacheon.

Meanwhile, the government will prepare a 'Construction Cost Stabilization Plan' next month. Through this, if the price reductions of raw materials have not been reflected in items like cement, they plan to induce price decreases.

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