75,000 Public Rental and Public Sale Houses to be Supplied in the Second Half of the Year... 12,000 More than Last Year

43,356 Housing Units Supplied in the Seoul Metropolitan Area Including 12,341 Units in Seoul

[Asia Economy Reporter Kangwook Cho] From this month until the end of the year, approximately 75,000 public rental, public sale, and publicly supported private rental housing units will be supplied.

The Ministry of Land, Infrastructure and Transport announced on the 3rd the plan to recruit tenants for public rental, public sale, and publicly supported private rental housing in the second half of the year, stating that a total of 75,083 units nationwide will be recruited from this month until the end of the year. The supply volume of 75,083 units in the second half of the year is 12,315 units more than the second half of last year (62,872 units) and 4,926 units more than the first half of this year (70,114 units).

Specifically, there are 57,842 public rental units, 12,315 public sale units (excluding preliminary subscription), and 4,926 publicly supported private rental units. Among these, the volume in the 수도권 (Sudogwon, Seoul Capital Area) accounts for 57.7% of the total, or 43,356 units.

Public sale units account for 16.4% of the total supply volume in the second half of the year and 19.2% with 8,324 units in the 수도권. Of the nationwide public sale units, 3,401 units, which is 27.6%, will be supplied as Newlywed Hope Towns. The government plans to secure sites in the 3rd New Towns and the 2·4 Plan project districts from the second half of this year to supply ‘public owner-occupied housing,’ which is sold at a lower price than general public sale housing. Public owner-occupied housing will be supplied within the range of 5-10% of the supply volume in each district such as the 3rd New Towns, and 10-20% of the 2·4 Plan project district volume.

Public rental housing will supply 31,809 units in the 수도권, including 10,772 units in Seoul, and 26,033 units in non-capital areas such as Busan, Daejeon, and Gwangju. To alleviate housing cost burdens for young people and newlyweds, 30% of the 31,809 units supplied in the 수도권 will be provided as Happy Housing.

The government plans to fully introduce the ‘Integrated Public Rental’ from next year, which consolidates the complex types of public rental housing into one and relaxes income criteria so that more middle-class citizens can use public rental housing. Integrated public rental housing will introduce medium-sized units (60-85㎡), improve the quality of major finishing materials to the level of sale housing, supply spacious and comfortable rental housing, and install living SOC such as national and public daycare centers within complexes, aiming to supply ‘rental housing where people want to live.’

In December, a first pilot supply of 1,181 units will be promoted in Gwacheon Knowledge Information Town (605 units) and Namyangju Byeollae (576 units). From next year, all newly constructed public rental housing will be supplied as integrated public rental housing. The government plans to designate six second-phase integrated public rental pilot complexes following Gwacheon and Namyangju within this year, and introduce medium-sized units (60-85㎡) for the first time in these complexes (based on project approval, 1,000 units). Furthermore, it plans to gradually expand this and supply more than 20,000 medium-sized units annually from 2025.

Publicly supported private rental housing guarantees residence for over eight years and sets initial rent lower than market prices. Tenants will be recruited for 4,926 units nationwide, including 3,223 units in the 수도권.

Kim Susang, Director of the Housing and Land Office at the Ministry of Land, Infrastructure and Transport, said, "Through the 3080+ housing supply plan, we will continue to expand housing supply in urban areas and stably supply public housing and publicly supported private rental housing to meet diverse housing demands," adding, "We will supply public rental housing with sale housing-level quality, spacious and comfortable, combined with living SOC to provide ‘rental housing where people want to live,’ and continue to supply customized public housing such as various specialized rental housing to meet demand."