Eased Income Requirements for Newlyweds and First-Time Special Housing
Dual-Income Couples with One Child Can Earn Up to 100 Million KRW Annually
Announced at Inter-Ministerial Meeting in October Last Year
[Asia Economy Reporter Moon Jiwon] From the 2nd of next month, the income requirements for special supply (special allocation) for newlyweds and first-time homebuyers will be relaxed by 20-30 percentage points. The income requirements for the Newlywed Hope Town sales will also increase by 10 percentage points. For dual-income couples with one child, an annual salary of up to 106.56 million KRW will now be eligible to apply for the newlywed special supply.
The Ministry of Land, Infrastructure and Transport announced on the 28th that the amendments to the Housing Supply Regulations and the Enforcement Rules of the Public Housing Special Act, which were announced at the Real Estate Market Inspection Meeting of related ministers on October 14 last year, will be implemented from the 2nd of next month.
First, according to the amendments, the income requirements for special supply for newlyweds and first-time homebuyers will be relaxed.
Currently, for private housing, the income criteria for newlywed special supply are as follows: 75% of the quota (priority supply) must have an average monthly urban worker income of 100% (120% for dual-income households) or less, and the remaining 25% (general supply) must be 120% (130% for dual-income) or less. For general supply, only when purchasing a home priced at 600 million KRW or more for the first time, the standard is relaxed to 130% (140% for dual-income) or less.
Going forward, the priority supply ratio will be adjusted from 75% to 70%, maintaining the current standards, and the general supply ratio will increase to 30%, relaxing the income criteria to 140% (160% for dual-income).
As a result, households with three or fewer members and a pre-tax monthly income of up to 7.78 million KRW (8.88 million KRW for dual-income) will also be eligible to apply for the newlywed special supply. Converting a monthly income of 8.89 million KRW to an annual salary amounts to approximately 106.56 million KRW.
For public sale housing, the current income requirement is 100% (120% for dual-income) or less. The government will subdivide public sales into priority supply (70%) and general supply (30%), applying the existing 100% (120% for dual-income) or less for priority supply, and relaxing the income criteria to 130% (140% for dual-income) for general supply.
For Newlywed Hope Town, currently only newlyweds with incomes at or below 120% (130% for dual-income) are eligible, and the criteria are relaxed to 130% (140% for dual-income) only when purchasing a home priced at 600 million KRW or more for the first time. From next month, a uniform application of 130% (140% for dual-income) or less will be applied.
The income requirements for first-time homebuyer special supply will also be relaxed.
Currently, the income requirements for first-time special supply are 100% or less for public sale housing and 130% or less for private housing, but going forward, 70% of the supply will be prioritized for those meeting the existing income requirements, and the remaining 30% will have significantly relaxed income criteria.
Accordingly, for the remaining 30% quota, public sale housing will allow applicants with incomes up to 130%, and private housing up to 160%.
Additionally, project operators must notify the actual move-in month two months before the scheduled move-in date and notify the actual move-in date one month before the actual move-in.
For medium to large complexes with 500 or more households, the designated move-in period must be set to at least 60 days, and for small complexes with fewer than 500 households, at least 45 days. This consideration is due to the difficulties in preparing for moving with a short designated period and the safety risks when multiple households move simultaneously.
Furthermore, new regulations restricting resident qualifications for violators of resale activities have been established.
Those who violate resale restrictions (including intermediaries) will have their resident qualifications restricted for 10 years from the date the violation is detected, similar to those who disrupt supply order. This is a follow-up measure to the amendment of the Housing Act on August 18 last year and will be enforced from the 19th of next month.
In addition, repetitive new institution workers such as teachers will be excluded from the special supply for institutions relocating to the Administrative City, and for long-term military personnel with over 25 years of service recommended by the Minister of National Defense, pre-residence requirements will be relaxed only in the metropolitan area excluding speculative overheated zones.
The income criteria for 1-2 person households in public rental housing will also be improved. The criteria will be raised by 20 percentage points for single-person households and 10 percentage points for two-person households, providing opportunities to more households.
The basis for introducing the pre-sale subscription system has been established, and housing for the elderly welfare has been expanded from permanent rental housing to include national rental and Happy Housing, which are constructed public rental housing types.
When important matters that may affect resident selection in the resident recruitment announcement are changed, a notice period of at least 5 days is required, and children born out of wedlock but recognized as born during marriage will also be acknowledged as children born during marriage, granting them first-priority qualification for newlywed special and priority supply in permanent, national rental, and public sale housing.
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