[Asia Economy Reporter Moon Jiwon] Over the past two years, more than 90% of newlywed special supply (special allocation) winners in private sale complexes with prices exceeding 30 million KRW per 3.3㎡ were in their 20s and 30s.
Since the newlywed special supply has income requirements, it is analyzed that most of these winners likely prepared the house payment with parental support rather than earned income.
According to the 'Private Sale Newlywed Special Supply Winner Status' submitted by the Ministry of Land, Infrastructure and Transport to Kim Sang-hoon, a member of the National Assembly Land, Infrastructure and Transport Committee from the People Power Party, among 174 newlywed special supply winners in complexes with prices over 30 million KRW per 3.3㎡ from 2018 to July 2020, 150 (86.2%) were in their 30s and 14 (8.0%) were in their 20s.
In two complexes where the price exceeded 40 million KRW per 3.3㎡, the majority of winners were also in their 20s and 30s. The average sale price per 3.3㎡ for apartments nationwide is 11.85 million KRW.
Among 1,326 newlywed special supply winners nationwide in complexes priced over 25 million KRW per 3.3㎡, those in their 30s accounted for the largest share with 1,152 (86.9%), and those in their 20s numbered 93 (7.0%). More than 90% of the high-priced complex newlywed special supply units were taken by people in their 20s and 30s.
Since private newlywed special supply targets newlywed couples, it is natural that the winning rate for those in their 20s and 30s is high.
However, considering the eligibility criteria?being a non-homeowner within seven years of marriage and having a monthly average income below 120% of the urban worker household standard (approximately 6.5 million KRW per month for a three-person household)?it is explained that most of the winners in their 20s and 30s would have found it difficult to prepare funds solely on their own. Most of these are apartments in Seoul and other metropolitan areas, where financing through loans also has limits.
Ultimately, despite low income, certain groups with substantial basic cash assets or parental support inevitably take the private housing newlywed special supply units. In particular, many of these complexes had so-called 'lottery sales,' where the sale price was lower than the surrounding market price.
Assemblyman Kim Sang-hoon emphasized, "Newlywed special supply for low-income groups could inadvertently become a means of wealth inheritance and accelerate polarization among the younger generation," adding, "It is necessary to redefine the criteria so that housing can be supplied to young people and newlywed couples who truly need homes."
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