New Purchase Rental Housing: Construction of 44,000 Units to Begin in the Seoul Metropolitan Area This Year, Record-High Agreements Secured

Record-High 54,000 Units Secured
Supply Volume Up 128% Year-on-Year
Applications Open for 11,000 Units in the Seoul Metropolitan Area

The Ministry of Land, Infrastructure and Transport and Korea Land and Housing Corporation (LH) are expected to accelerate housing supply in the Seoul metropolitan area, following the signing of new purchase agreements for approximately 54,000 units last year. In particular, by securing 15,000 units in Seoul, where housing demand is concentrated, the public rental housing supply in the city center is expected to gain momentum.

On January 28, the Ministry of Land, Infrastructure and Transport announced its policy direction for 2026 and reported the business achievements of the previous year.

Youth Purchase Rental Housing in Daebang-dong, Dongjak-gu, Seoul. Korea Land and Housing Corporation.

According to the business performance data released by the ministry, the number of new purchase agreements secured last year totaled 53,771 units. This represents 128% of the previous year's figure (41,955 units), and is about six times the amount in 2023 (9,253 units), marking an all-time record. Of these, approximately 48,000 units were in the Seoul metropolitan area, with 15,000 units secured in Seoul itself.

The new purchase rental housing program involves LH purchasing newly built or soon-to-be-completed private-sector housing and supplying it as rental housing. The majority of these are non-apartment types, such as single-unit apartments, row houses, and multiplex housing.

Based on the secured volume, the ministry plans to begin construction of more than 44,000 new purchase rental units in the Seoul metropolitan area this year, including 13,000 units in Seoul. In the supply plan announced last September, the government pledged to start construction of 70,000 units by 2027 and 140,000 units by 2030, and it intends to pursue these targets without delay.

In addition, this year, applications will be accepted for 11,000 purchase rental units in the metropolitan area (including 3,000 units in Seoul). Of these, 60% are expected to be supplied to young people and newlyweds.

The Ministry of Land, Infrastructure and Transport and LH plan to focus not only on quantitative expansion but also on quality control, aiming to provide high-quality, customized housing for newlyweds and young people.

A comprehensive review of the appropriateness of new purchase rental housing prices will also be conducted. This move comes after President Lee Jaemyung pointed out last year that LH was purchasing new private housing at excessively high prices for its rental business. To address these concerns, the ministry will form an investigation committee composed mainly of external experts and aims to complete a full review of past purchase records by April.

Yoonduk Kim, Minister of Land, Infrastructure and Transport, stated, "It is important for the public sector to send a clear supply signal, especially when the housing market is facing difficulties. If last year was a year of preparation with record-high purchase agreements, this year will be a year of execution, with construction starting on more than 44,000 units in the metropolitan area and 13,000 units in Seoul."

Cho Kyungsook, Acting President of LH, said, "The 11,000 units for which agreements were signed in Seoul last year are located in excellent locations with proven living infrastructure, such as areas near subway stations, which will result in high satisfaction among actual residents. We will take the lead in stabilizing the housing market through phased construction and timely supply, based on thorough quality control."

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