The Korea Land and Housing Corporation (LH) plans to supply 20,000 rental housing units in downtown Seoul over the next three years. This initiative aims to increase the availability of newly constructed rental units for young people and newlyweds, who are in high demand for urban housing.
On September 8, LH held a field meeting at a newly constructed rental youth housing facility in Jongno-gu, Seoul, to discuss ways to expand the supply of youth housing in the city.
Attendees included Kim I-tak, First Vice Minister of Land, Infrastructure and Transport; lawmakers Kim Nam-kun, Oh Gi-hyung, and Lee Yong-sun; LH President Lee Seong-hoon; and over 20 youth council members. Participants toured the new rental youth housing to assess the layout, finishes, and built-in appliances before engaging in discussions.
Purchase rental housing is characterized by affordable rents in urban areas, near transportation hubs, and close to workplaces. The rent for first-priority applicants is set at about 40% of the market rate, with a maximum stay of 10 years, extendable to 20 years for married couples. Rent increases are capped at 5%.
Due to its accessibility to public transportation and favorable rental conditions, purchase rental housing in Seoul is highly sought after by young people. Last year, the average competition ratio for rental applications among young people in Seoul was 130 to 1, significantly higher than the national average of 50 to 1.
To address the housing needs of young people, LH is improving the purchase rental program and accelerating the supply rate. During the meeting, strategies were introduced to reduce financial burdens on developers, including initial funding support for land purchases and phased payments for acquisition costs. Priority points will be awarded for securing prime locations near universities and areas with high demand from young people.
Over the next three years, LH plans to supply 20,000 rental housing units in downtown Seoul, equivalent to the size of the Bucheon Daejang District. This includes approximately 15,000 units for young people and around 3,400 units for newlyweds, with a strategy to distribute them across various regions to meet diverse housing needs.
As rental costs in Seoul remain high, the expansion of purchase rental housing is expected to alleviate the financial burden on young residents and address the demand for proximity to workplaces.
LH President Lee Seong-hoon stated, “Newly constructed purchase rental housing can be developed from site selection to occupancy in 1 to 2 years, making it a key solution for stabilizing the rental market quickly. We will strive to provide more quality homes in desirable locations for young people, faster and in greater numbers.”
During the panel discussion that followed the meeting, participants agreed that high rental costs and a lack of available units in urban areas are core issues contributing to housing insecurity for young people. Attendees suggested expanding support to include middle-class youth.
Lawmaker Kim Nam-kun pledged, “I will actively support legislation and budget reviews to ensure that newly constructed purchase rental housing becomes a reliable housing alternative for young people.”
* This article has been translated by AI.
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