LH Begins Supply of 14,843 Households
Rent at 80% of Market Price... Deposit 80% of Rent
Plan to Supply 18,000 Households by 2022
Anyone Without a Home Can Apply
Last month, LH unveiled public rental housing under purchase agreements in Jangan-gu, Suwon-si, Gyeonggi Province. The government plans for LH to supply 18,000 units of 'public jeonse housing' with apartment-level quality by 2022. (Provided by LH)
[Asia Economy Reporter Lee Chun-hee] The government is set to begin supplying public rental housing in the form of jeonse-type public rental housing (public jeonse housing) to stabilize the rental market.
Korea Land and Housing Corporation (LH) announced on the 17th that it will start accepting applications for a total of 14,843 units of public jeonse housing from the 18th. The public jeonse housing, announced as part of the government's November 19 rental policy, is a type of public rental housing supplied similarly to jeonse by minimizing monthly rent and covering up to 80% (previously 60%) of the rent as a deposit, which is about 80% of the market jeonse price.
Since the supply targets the middle class, anyone without home ownership can apply regardless of income or assets. Residents will be selected through a random lottery in case of competition. A maximum residence period of six years is allowed.
Previously, in November last year, the government and LH planned to supply 18,000 units of this type of public jeonse housing nationwide by 2022. This includes 13,000 units in the metropolitan area and 5,000 units in Seoul. In particular, the support cost per household for existing purchased rental housing, which was up to 300 million KRW (average 120 million KRW), will be raised to a maximum of 800 million KRW (average around 600 million KRW) in Seoul, aiming to secure medium-sized housing with three or more rooms in high-demand urban areas.
The housing to be supplied this time includes 12,337 units of construction rental jeonse-type housing (3,949 units in the metropolitan area, 8,388 units in provincial areas) and 2,506 units of purchased rental jeonse-type housing (1,058 units in the metropolitan area, 1,448 units in provincial areas).
The rent is 70-80% or less compared to the market jeonse price. Tenants pay 80% of the basic rental conditions as a rental deposit and 20% as monthly rent. If it is difficult to prepare a large sum of money at the beginning of the lease, the deposit conversion system can be used to lower the deposit and increase the rent. For every 10 million KRW reduction in the rental deposit, applying a jeonse-to-monthly rent conversion rate of 2.5%, the monthly rent increases by 20,833 KRW.
Residents can live for four years if they maintain their non-homeownership status, and if there are no standby tenants afterward, they can stay for an additional two years.
Applications can be submitted through the LH Application Center website for three days from the 18th to the 20th. LH will also operate on-site applications for internet-vulnerable groups such as the elderly. During on-site applications, LH plans to follow social distancing guidelines by dispersing visitors during the application period, providing hand sanitizers, and maintaining appropriate spacing to comply with quarantine rules.
The announcement of successful applicants is scheduled for March 5, and the contract period is from March 17 to 19. Immediate move-in is possible upon full payment within the designated move-in period after contract signing. For purchased rental jeonse-type housing, the first priority announcement will be on the 18th of next month, with contracts to be signed after the 26th.
For detailed information such as housing location and rental conditions, please refer to the resident recruitment announcement posted on the LH Application Center and My Home Portal, or contact the LH call center.
An LH official stated, "We will alleviate housing insecurity for low-income and middle-class citizens struggling with the recent jeonse shortage by quickly supplying immediately available rental housing units," adding, "We will also continue efforts to secure more jeonse-type units."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
