75,000 Housing Units to be Supplied in Second Half of the Year... Public Sale in 수도권 Halved

12,000 More Households Than Last Year... Year-End Debut of 'Integrated Public Rental Housing'
30% of Supply in the Capital Area Allocated for Happy Housing for Youth and Others

[Asia Economy Reporter Jo Gang-wook] By the end of the year, approximately 75,000 public sale, public rental, and publicly supported private rental housing units will be supplied nationwide. Among these, about 12,300 units of public sale housing aimed at helping non-homeowners secure their own homes will be supplied, with around 8,300 units allocated to the Seoul metropolitan area.

On the 3rd, the Ministry of Land, Infrastructure and Transport announced that from this month until the end of the year, a total of 75,083 units of public sale, public rental, and publicly supported private rental housing will be recruited nationwide to stabilize housing for low-income non-homeowners and ease housing cost burdens. This is an increase of 12,315 units compared to 62,872 units during the same period last year, and 4,926 units more than the 70,114 units supplied in the first half of this year.

By type, excluding pre-sale, public sale units amount to 12,351, while public rental and publicly supported private rental units are 57,842 and 4,926 respectively. Of the total supply, 43,356 units, accounting for 57.7%, will be supplied in the Seoul metropolitan area.

◇ Public Sale Housing in the Seoul Metropolitan Area Halved = Although the total supply has slightly increased, most of it consists of rental housing. Public sale units account for only 12,315 units, representing 16.4% of the total. Specifically, in the Seoul metropolitan area, public sale units number 8,324, which is less than 10,000 units. This is only about half compared to the 16,051 units supplied in the second half of last year. The Ministry of Land, Infrastructure and Transport explained that including the 32,000 pre-sale units, the total supply for the second half exceeds 40,000 units. However, experts point out that pre-sale units simply bring forward the subscription period, and considering that actual move-in is delayed by at least 1 to 2 years, they should not be counted as net supply.

The supply in the Seoul metropolitan area includes many popular districts, so fierce competition for subscriptions is expected. At the end of this month, 545 units, including 227 newlywed hope town units, will be offered in Gwacheon Knowledge Information Town. The apartments in Pangyo Daejang District and Bundang Yatap-dong, scheduled for sale in December, are also expected to attract significant attention from demanders. In Seoul, newlywed hope towns are planned to be introduced in Gangseo-gu (September), and Nowon Gongneung and Dongjak Daebang (November).

◇ Integrated Public Rental Housing to Debut in Gwacheon and Namyangju by Year-End = In the second half of the year, 31,809 units will be supplied in the Seoul metropolitan area, including 10,772 units in Seoul, and 26,033 units will be supplied in other regions. The government plans to allocate 30% of the Seoul metropolitan area supply to Happy Housing, aimed at easing housing cost burdens for youth and newlyweds.

At the end of the year, the ‘Integrated Public Rental’ housing will also be introduced for the first time. Integrated Public Rental combines various complex public rental types into one, with rent and other conditions applied differentially based on income criteria. The first pilot supply of 1,181 units will be carried out in December at Gwacheon Knowledge Information Town (605 units) and Namyangju Byeollae (576 units). The Ministry of Land, Infrastructure and Transport plans to designate six additional leading integrated public rental complexes within the year, supplying 1,000 medium-sized homes of 60 to 85 square meters.

Publicly supported private rental housing, which guarantees residence for over 8 years and sets initial rent lower than market prices, will supply 4,926 units nationwide, including 3,223 units in the Seoul metropolitan area.

Meanwhile, the government plans to secure sites in the 3rd New Towns and 2·4 Plan project districts from the second half of this year to supply ‘Public Owner-Occupied Housing,’ which will be sold at prices lower than general public sale housing. Public Owner-Occupied Housing is planned to be supplied at 5-10% of the supply in each 3rd New Town district and 10-20% of the supply in the 2·4 Plan project districts.