Pre-Marital Couples Also Eligible for Move-In · Childbirth Incentives Provided
300 Households to be Recruited in July at 'Olympic Park Foreon'
20 Years for One Child, Priority Purchase Rights for Two Children
Income Criteria Lowered for Middle-Class Real Demand Move-In
2,000 'Newlywed Safety Houses' Near Stations Until 2026
Seoul City will significantly increase the supply of long-term jeonse housing and relax income criteria to alleviate housing burdens for newlywed couples. Newlyweds without children will also be eligible to move in, and if they have one child, they can reside for up to 20 years. If they have two children, they will be granted the priority right to purchase the rental housing. A customized housing space for newlyweds called 'Newlywed Couple Safe Housing' will also be introduced.
On the 29th, Seoul City announced the 'Plan to Expand Housing for Newlywed Couples in Response to Low Birth Rates,' which includes supplying 'Long-term Jeonse Housing 2' for newlywed couples and the customized housing space 'Newlywed Couple Safe Housing.'
Long-term jeonse housing, introduced by Mayor Oh Se-hoon in 2007, is rental housing where residents can live for up to 20 years at a price below 80% of the surrounding jeonse market price. Long-term jeonse housing has contributed to increasing birth rates, with the number of children born after moving into long-term jeonse housing being about 27% higher compared to other public rental housing.
Seoul City plans to expand move-in opportunities for childless newlywed couples and provide childbirth incentives so that families can live until their children reach adulthood. Previously, public rental housing prioritized multi-child families, making it difficult for newlyweds to move in.
Prospective Couples Also Eligible; 20-Year Residency Possible with One Child
The city will supply 4,396 units of long-term jeonse housing for newlywed couples over three years until 2026, and then 4,000 units annually from 2026 onward. This is about eight times the 511 units supplied to newlywed couples over the past five years.
Move-in incentives vary depending on the number of children born. If one child is born, the residency period is extended from 10 to 20 years. If two children are born, after 20 years, the family can purchase the home at 10% below market price, and if three children are born, at 20% below market price.
When a child is born, the income criteria applied at contract renewal will also be relaxed by 20 percentage points. The city plans to prioritize 300 units of the 'Olympic Park Foreon' long-term jeonse housing, scheduled for move-in by the end of the year, for newlywed couples. Recruitment announcements will be made in July.
Significant Relaxation of Income Criteria for Middle-Class Real Demand
Eligibility requires being a newlywed couple in a household without home ownership. Anyone who has registered their marriage within the past seven years or plans to register within six months can apply.
Income criteria will also be relaxed. For public rental housing under 60㎡ exclusive area, the monthly average income for urban workers' households must be 120% or less (6.49 million KRW for two-person households), and for dual-income households, 180% or less (9.74 million KRW for two-person households). For rental housing over 60㎡ exclusive area, the limit is 150% or less (8.12 million KRW for two-person households), and for dual-income households, 200% or less (10.83 million KRW for two-person households).
However, the relaxation of income criteria for dual-income households requires approval from the Ministry of Land, Infrastructure and Transport. The city has requested the Ministry to provide childbirth incentives for families moving into not only long-term jeonse housing but also other public rental housing. A Seoul city official explained, "We plan to complete negotiations by July and apply the revised criteria before recruiting residents for Olympic Park Foreon."
The city will allocate half of the newlywed couple housing units to families with children and half to those without. Families with children will be prioritized for larger units.
2,000 Units of 'Newlywed Couple Safe Housing' Near Subway Stations to be Supplied by 2026
Seoul City will introduce a new rental housing supply model for newlywed couples called ‘Newlywed Couple Safe Housing.’ It targets newlywed couples married within seven years and prospective newlyweds, supplying 70% as rental units and 30% as sale units. Private rental housing will be supplied at 70-85% of the surrounding market price, and public rental housing at about 50% of market price.
Newlywed Couple Safe Housing will provide customized spaces and services tailored to the characteristics of newlywed couples. Considering changes in household composition, the units will include alpha rooms and children's rooms, and high-end built-in appliances such as refrigerators and air conditioners will be installed for convenience.
The housing will be built within 350 meters of subway stations or within 50 meters of main roads. Pilot sites will be recruited in June, and ordinances and operational standards will be established in July. Support measures for private developers to ensure smooth supply have also been proposed. Up to 30% can be supplied as sale units, and the maximum legal floor area ratio will be granted. If a type 2 general residential area is upgraded to a quasi-residential area, the maximum floor area ratio can reach 500%.
Mayor Oh Se-hoon said, "As long-term jeonse housing has helped increase birth rates, we have put forward the ‘Plan to Expand Housing for Newlywed Couples’ with the determination to do everything Seoul City can. We will establish a system where society collectively raises children once they are born, using all available means and prioritizing the allocation of necessary resources."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
