The Seoul Housing and Communities Corporation (SH) is overhauling its purchase rental housing program to enhance transparency and fairness in the review process while expanding support for businesses. These reforms aim to stabilize project conditions and strengthen the foundation for tailored housing supply.
On June 1, SH announced the completion of improvements to the purchase rental housing program's review procedures, which will take effect with the '2026 First New Construction Agreement Purchase Rental Housing Announcement' publicized on May 15.
The core of this reform is the enhancement of the review system. SH has replaced the previous qualitative comprehensive review with a 'three-stage cut-off review' that evaluates suitability in phases. Additionally, the three-stage suitability evaluation criteria will be made public to increase predictability.
Independence in the purchase review process has also been strengthened. All evaluators will be external members, and the pool of review committee members has been expanded. Notably, sellers will now directly draw lots to select review committee members, and SH's integrity ombudsman will attend the review process to ensure objectivity.
Support measures for businesses have also been established. Starting in the fourth quarter of this year, SH will introduce the 'HUG Urban Housing Special Guarantee Loan' system and plans to expand pre-consultation services to include electrical and mechanical sectors in addition to construction. Regular meetings will be held to enhance communication with stakeholders.
A demand-centered housing supply system will also be established. New evaluation criteria reflecting the characteristics of different housing types and the supply status and demand in various districts will be created to assess location and convenience. External experts, including architects, will evaluate construction plans, and a 'non-apartment standard plan for purchase rental housing' will be developed and distributed to improve housing quality.
On May 29, SH held a briefing at its main auditorium to explain the improved purchase rental housing system and announcements to businesses, designers, and construction companies.
SH President Hwang Sang-ha expressed hope that these reforms would enhance fairness in the purchase rental housing program and invigorate the initiative. He stated, "We will continue to refine related systems to ensure the swift and stable provision of quality public housing to Seoul residents."
The purchase rental housing program allows public institutions to buy privately built homes and rent them at below-market rates to low-income individuals, youth, newlyweds, and the elderly. Notably, the new construction agreement purchase rental housing involves pre-agreements with SH before construction begins, rather than after the buildings are completed.
* This article has been translated by AI.
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