LH to supply 20,000 public rental homes in central Seoul over three years

Korea Land and Housing Corp. has set out a three-year plan to supply 20,000 purchased-rental homes in central Seoul, giving the city’s young residents the largest share of the planned units.

LH announced the plan on the 8th at a meeting on youth housing held at a newly built purchased-rental home in Jongno, Seoul. It was the first time the housing agency had separately specified how many of the government’s planned metropolitan-area units would be supplied in Seoul. The Ministry of Land, Infrastructure and Transport had said in May that more than 66,000 purchased-rental homes would be supplied, or construction started, in Seoul and other regulated areas of the capital region by next year.

The Seoul plan consists of 14,558 homes for young people, 3,398 for newlyweds and 2,572 other units, measured by public move-in announcements. LH said it would spread the homes across multiple parts of Seoul to respond to different housing needs.

Under the purchased-rental program, LH buys new or existing homes in urban centers and near transit stations, then rents them below market prices. First-priority young tenants pay about 40% of market rent and can stay for up to 10 years.

“

Newly built purchased-rental homes can go from identifying a candidate site to move-in in one to two years, making them a key card for stabilizing the jeonse and monthly-rent markets most quickly.

LH is revising its new-build acquisition process to secure homes more quickly in central Seoul. The agency plans to provide land-purchase funds at an early stage and pay acquisition costs in stages. It will also give additional consideration to locations with strong demand from young people, including areas near universities.

Demand for the program remains high. The average application competition rate for Seoul’s youth purchased-rental homes stood at 130 to 1 last year, compared with 50 to 1 nationwide.

LH President Lee Seong-hoon said newly built purchased-rental homes could move from site identification to occupancy in one to two years, making them a key tool for stabilizing rental markets quickly. He said the agency would provide more homes, faster, in locations young people want.

“

We will provide more good homes, faster and in greater numbers, in locations young people want.