LH to Supply 20,000 Public Rental Homes in Central Seoul Over Three Years

The Korea Land and Housing Corporation, known as LH, plans to supply 20,000 purchased-rental homes in central Seoul over the next three years. The scale is comparable to the number of homes planned for the Bucheon Daejang district, one of the third-generation new towns.

LH announced the plan on the 8th at a housing discussion for young people held at a newly built purchased-rental youth housing complex in Jongno, Seoul. Based on tenant recruitment notices, the total includes 15,000 homes for young people and about 3,400 for newlyweds. The homes will be distributed across several parts of the capital.

Under the purchased-rental program, LH buys urban homes and rents them out below market prices. For first-priority applicants, rents stand at about 40% of market rates. Residents can stay for up to 10 years, or up to 20 years if they marry.

Demand has been intense. Last year, applications for youth purchased-rental homes in Seoul drew an average competition rate of 130 to 1, above the national average of 50 to 1. To accelerate supply, LH is revising the system by providing developers with early funding for land purchases and paying acquisition costs in stages. Projects near universities and other locations popular with young people will receive additional points during purchase reviews.