LH, First Supply of Jeonse-Type Purchase Rental This Month

[Asia Economy Reporter Moon Jiwon] The first supply of 'Jeonse-type Purchase Rental Housing,' announced as part of the government's Jeonse measures, will be carried out at the end of this month. A total of 174 households will be supplied in six autonomous districts within Seoul.

Korea Land and Housing Corporation (LH) announced on the 9th that it will recruit tenants for 174 Jeonse-type purchase rental housing units in accordance with the 'Support Plan for Housing Stability for Low-income and Middle-class' announced by the government last month. An LH official stated, "To promptly respond to the Jeonse demand in Seoul, we have started recruiting tenants for 174 units available for immediate occupancy in Seoul," adding, "By the end of the year, we plan to recruit tenants nationwide, including Seoul."

Purchase rental housing refers to public housing where LH purchases multi-family houses, officetels, etc., and rents them out at prices lower than market rates. The units supplied this time are distributed by district as follows: ▲Gangbuk-gu 24 units ▲Gangseo-gu 22 units ▲Guro-gu 16 units ▲Nowon-gu 34 units ▲Dobong-gu 17 units ▲Yangcheon-gu 61 units. LH explained that with relaxed eligibility criteria, any member of a household without homeownership can apply regardless of income or assets.

The rental conditions are about 70-80% of the market Jeonse prices. However, this is not a pure Jeonse. Tenants pay 80% of the basic rental condition as a deposit and the remaining 20% as monthly rent. Tenants can use the deposit conversion system, which lowers the deposit and increases the rent.

The rental period is basically four years as long as the tenant maintains the status of non-homeownership, and if there are no waiting applicants for the housing afterward, the tenant can reside for an additional two years. Applications will be accepted by mail from the 21st to the 23rd of this month. After selecting preliminary candidates by the end of January next year, contracts and move-ins will proceed sequentially according to the order. For detailed information such as the location or rental conditions of individual houses, please contact the LH Subscription Center or LH Call Center.