Supply of 430,000 Housing Units for Newlyweds
Relaxed Income Requirements to Reduce Housing Cost Burden
Priority Public Rental Housing for Households with Children
The public housing multi-child criteria, currently divided into public sale (3 children) and rental (2 children), will be unified to 2 children. Additionally, a total of 430,000 housing units will be supplied to newlyweds by 2027, including public sales. Income requirements will be relaxed and interest rates will be applied differentially by income bracket when newlyweds purchase homes or take out jeonse (long-term deposit lease) loans.
On the 28th, the Ministry of Land, Infrastructure and Transport announced the "Family-Friendly Housing Service Plan" containing these details at the "Yoon Suk-yeol Government Low Birthrate and Aging Society Policy Tasks and Promotion Directions" meeting presided over by President Yoon Suk-yeol.
First, the government plans to supply a total of 430,000 units to newlyweds by 2027, including 155,000 units of public sale (New:Home), 100,000 units of public rental, and 175,000 units of private sale. This estimate is based on the special supply volume for newlyweds in private sales over the past five years (2018?2022).
Public sale (New:Home) will be supplied at prices cheaper than market value in three types?sharing, selective, and general types?allowing various choices according to income and asset conditions. In addition, the burden of home ownership will be eased through exclusive New:Home mortgage support (fixed interest rates of 1.9?3.0%, etc.) and expanded fund loans (newlyweds from 270 million KRW to 400 million KRW).
The government will also ease income requirements for purchase and jeonse loan funds for newlyweds to reduce housing cost burdens. The budget required to relax income requirements will be operated temporarily with a fund expenditure limit of 2 trillion KRW, and next year, it will be promoted considering the fund loan demand and the relationship with policy loan products. Furthermore, the applied interest rates will be differentially applied by income bracket considering income levels. Interest rates will be determined by considering market interest rate trends, fiscal requirements, and the level of the Bogeumjari Loan interest rate.
The public housing multi-child criteria, currently divided into public sale for 3 children and rental for 2 children, will be unified to 2 children by the first half of the year. Also, income and asset requirements will be relaxed by 10 percentage points per child, up to a maximum of 20 percentage points (for 2 children), to expand eligibility for public sale and rental housing. For example, for 2 children, the income standard for public rental housing, which was previously 100% of median income (5.4 million KRW), will be raised to 120% (6.58 million KRW).
Measures to prioritize public rental housing supply to households that are married or raising children will also be pursued. Accordingly, existing tenants who have children will be able to live in larger areas proportional to the number of children. For example, tenants in 2-person household areas (30?50㎡) will be prioritized for 3?4 person areas (40?60㎡ or more) when the number of children increases.
Additionally, new tenants moving into integrated public rental housing, of which 175,000 units will be supplied by 2027, will be provided with customized area sizes considering household size increases due to marriage and childbirth.
The size of Happy Housing units will also be expanded. Among new units, those not yet under construction will have their planned size changed from 16㎡ to 25㎡, and existing Happy Housing will be expanded through household integration remodeling. The government plans to promote a pilot project for household integration remodeling this year and gradually expand it from next year. Furthermore, measures to provide the same benefits to households that have children regardless of marriage status are also being considered.
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