"Rent and Maintenance Fees Reduced"... Yeoksegwon Youth Housing Transforms into 'Cheongnyeon Ansim Housing'

Seoul City is completely overhauling the ‘Yeoksegwon Youth Housing’ program. Rent and maintenance fees will be reduced, and a total of 120,000 units of Youth Safety Housing will be supplied throughout Seoul by 2030. Additionally, the project area, which was previously limited to areas near subway stations, will be expanded to include main roads accessible by bus.

On the 4th, Seoul City announced that it will establish the ‘Youth Safety Housing Promotion Plan’ to revamp the ‘Yeoksegwon Youth Housing’ project. ‘Yeoksegwon Youth Housing’ refers to housing located within 350 meters of a subway station, offered at rents lower than market prices, allowing residents to stay for up to 10 years. Currently, about 12,000 units are occupied within Seoul, and in addition to the original goal of supplying 65,000 units by 2026, an additional 55,000 units will be provided.

Exterior view of Seogyo-dong Harrington Youth Housing
[Photo by Asia Economy DB]

This plan includes lowering rent and maintenance fees. Previously, the rent for private rental types of Yeoksegwon Youth Housing was supplied at 85-95% of the surrounding market price, but through the reorganization, it will be supplied at 75-85%, a 10 percentage point reduction. After the market price is announced, the plan will also undergo review by the ‘Youth Housing Operation Advisory Committee,’ which collects feedback.

Maintenance fees will also be reduced by about 10 percentage points. To achieve this, 30-40% of idle parking spaces within the building will be opened for paid use, and revenue generated from operating shared rental spaces will be used to offset the reduced maintenance fee burden. Additionally, the previous policy that only allowed residents with livelihood-related vehicles to use the parking lot will be changed to permit vehicle use if parking fees are paid.

The project area for Youth Safety Housing will also be expanded. Previously, the Yeoksegwon standard was within 350 meters of urban rail platforms, but this will be adjusted to within 250 meters. Seoul City stated that the project area will not be limited to ‘Yeoksegwon’ but will be expanded to main roads accessible by buses and other means. The city explained that main roads have sufficient infrastructure such as public and convenience facilities and public parking lots, and because they have low floor area ratios and many old buildings, they offer favorable conditions and development potential for youth housing supply. For main roads that are already sufficiently developed, some allowance will be made to upgrade the zoning to ‘commercial areas,’ and Yeoksegwon areas will be allowed up to 350 meters depending on surrounding development conditions.

The residential area per household will also increase. Previously, the minimum residential area for single-person households was 20㎡ (exclusive area), but this will be expanded to 23㎡. In addition, standardized specifications and quality criteria will be provided for built-in appliances, which previously varied by developer, to ensure uniform products are installed.

Furthermore, the city plans to operate a ‘Youth Safety Housing Support Center’ to ensure that young people do not lack information. The support center, currently located near Jangji Station in Songpa-gu, will be relocated near Samgakji Station in Yongsan-gu, providing services from move-in information to application and move-out.

Additionally, from the early stages of the Youth Safety Housing project, local districts will participate in the ‘Integrated Deliberation Committee’ to directly convey opinions from local governments and residents. For developers facing difficulties due to recent increases in construction costs and interest rates, construction loan interest support will be increased from the existing 1.5% to 2% for this year only. In particular, the ‘pre-review procedure,’ in which the city and local districts previously confirmed project requirements in advance, will be abolished to shorten the project period and reduce the burden on developers.

Han Byung-yong, Director of Seoul City’s Housing Policy Office, said, “The Yeoksegwon Youth Housing project has been firmly established over the past five years with strong interest and support from young people. We will spare no effort in improving and supporting the project to supply Youth Safety Housing where young people can live comfortably and worry-free for a long time through this project innovation.”