LH to Supply 4,041 Rental Housing Units for Youth and Newlywed Couples

[Asia Economy Reporter Lee Chun-hee] Korea Land and Housing Corporation (LH) announced on the 9th that it will recruit tenants for 4,041 units of the 4th round of purchased rental housing in 2020, targeting young people and newlyweds.

This recruitment volume consists of 3,350 units for newlyweds and 691 units for youth, with 2,184 units in the metropolitan area and 1,857 units outside the metropolitan area.

For newlyweds, two types are offered to expand applicants' choices: Type I (1,626 units), which allows residence for up to 20 years at about 30-40% of market price in multi-family houses and other purchased rental housing, and Type II (1,724 units), which allows residence for up to 10 years (6 years for those without children) at about 60-70% of market price in apartments and officetels.

The youth purchased rental housing is supplied fully equipped with essential household appliances such as air conditioners, refrigerators, and washing machines, considering the housing characteristics of young people who move frequently for job preparation and proximity to work. The deposit ranges from 1 to 2 million KRW, and the rent is about 40-50% of market price.

In particular, starting from this recruitment, according to the revised "Housing Lease Protection Act," the conversion rate applied when converting the deposit into monthly rent has been lowered from 3% to 2.5%. This means that paying 20,000 KRW more per month reduces the deposit by 10 million KRW. Conversely, if tenants want to reduce their rent burden, increasing the deposit by 2 million KRW lowers the monthly rent by 10,000 KRW.

For example, in the case of a newlywed Type II purchased rental housing with a tenant deposit of 70 million KRW and a monthly rent of 300,000 KRW, if the deposit is lowered to 50 million KRW, the monthly rent becomes 340,000 KRW; if the deposit is increased to 80 million KRW, the monthly rent becomes 250,000 KRW.

Meanwhile, LH plans to expedite the tenant selection process by advancing the application and document submission periods so that homeless youth and newlyweds can move into purchased rental housing as soon as possible. Applications for the youth type start from the 9th, and for the newlywed type from the 12th.

For more details such as housing location and rental conditions, refer to the tenant recruitment announcement posted on the LH subscription center or contact the LH call center.

An LH official said, "We will continue to supply high-quality purchased rental housing to alleviate housing instability for young people and newlyweds who are struggling due to the recent jeonse crisis."