[Practical Finance] Good News for Tired 3040 from 'Panic Buying'... Shorter Marriage Duration and Younger Children Are More Advantageous

<3040, Aim for Special Pre-Subscription>

30% for Newlywed Special Supply
Shorter marriage duration, more children, longer residence in the area are advantageous
Dual-income 3-person household monthly income under 6.66 million KRW... Kim Hyun-mi "We plan to ease conditions to provide opportunities"

25% for First-Time Homebuyer Special Supply
100% lottery if application requirements are met
Must be married or have children... Over 5 years of income tax payment required
3-person household monthly income under 5.55 million KRW... Same conditions for dual-income households

[Asia Economy Reporter Lee Chun-hee] Starting from July next year, all pre-sale housing units will be supplied as 100% public sale. In the case of public sale, 85% of the supply volume is allocated to special supply, and only 15% is for general supply. Among these, especially 30% is allocated to newlyweds, and 25% to first-time homebuyers, making a total of 55% of the main beneficiary group the 30-40 age group. This is likely good news for those who relied on low scores for 'panic buying.'

Newlyweds with children should aim for the Newlywed Special Supply

The Newlywed Special Supply is available only to households without a home as of the pre-sale resident recruitment announcement date, who have been married for less than 7 years, or are prospective newlyweds, or single-parent families with children under 6 years old. However, since priority is given only to households with children, it is more advantageous for households with children to apply.

If competition occurs within the first priority group, winners are determined based on a point system considering marriage duration (newlyweds) or child's age (single-parent families) (3 points), number of children (3 points), and length of residence in the relevant area (3 points). The shorter the marriage duration and younger the children, the more children, and the longer the residence period, the more advantageous it is.

Applicants must meet income and asset requirements. The income requirement applies 100% of the previous year's average monthly income of urban workers' households. For a 3-person household, the monthly income must be below 5,554,983 KRW, and for dual-income households where the spouse also earns income, the standard rises to 120%, or 6,665,980 KRW per month.

As for asset requirements, as of this year, the total value of real estate assets including land and buildings must be 215.5 million KRW or less. If owning a car, its value must be 27.64 million KRW or less.

The Newlywed Special Supply has been criticized as a 'pie in the sky.' As housing prices in the metropolitan area have skyrocketed, most dual-income couples who actually have the purchasing power to buy a home exceed the income criteria. As a result, these households have become major players in the housing market, inducing panic buying.

However, recently, Minister of Land, Infrastructure and Transport Kim Hyun-mi stated, "There are many cases where the score is low but dual-income causes them to fail the income requirement, creating obstacles," and "We plan to further relax income requirements to give opportunities to newlyweds with low scores who have difficulty winning." Therefore, there is still a possibility that the system will change before the pre-sale starts next year.

Childless couples should aim for the First-Time Homebuyer Special Supply... New employees cannot apply

If the marriage period has already exceeded 7 years or the newlyweds have no children, they should consider the First-Time Homebuyer Special Supply. This special supply is provided 100% by lottery among those who meet the application requirements.

However, somewhat strict eligibility criteria apply. First, if unmarried or divorced, one cannot apply unless they have children. Only those who are married or have children are eligible to apply.

New employees also cannot apply for the First-Time Homebuyer Special Supply. Applicants must have paid income tax for at least 5 years and currently be employed as a worker, self-employed, or freelancer to qualify.

The income and asset criteria are applied the same as for the Newlywed Special Supply. However, the 20% increase in income criteria for dual-income households does not apply here, making it more difficult for dual-income households to meet the requirements.