Long-term Jeonse Housing 2 to be Supplied Next Month... Perfect Competition Expected for 'Olympic Park Foreon' [Practical Financial Technology]

Childless Newlyweds Also Eligible to Apply
20-Year Residency Guaranteed After Childbirth
Priority Purchase Rights for Families with Two or More Children
Olympic Park Foreon Expected to See Competition Among Top Scorers
Existing Long-Term Jeonse Residents Penalized When Applying
Area and Income Criteria Improvements Also Key
Ministry of Land, Infrastructure and Transport: "Sympathetic to Purpose... Under Careful Review"

Seoul City is set to supply the ‘Long-term Jeonse Housing 2 (SHift2)’ for the first time in July, following a comprehensive reform of the long-term jeonse housing system after 17 years. Starting with ‘Olympic Park Foreon’ in Dunchon-dong, Gangdong-gu, Seoul, the supply will focus mainly on newly built apartments preferred by newlyweds. A key advantage not found in the existing long-term jeonse housing is that incentives are given after childbirth post-move-in, and households with two or more children can receive a priority purchase right.

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According to Seoul City on the 5th, the total number of units supplied for Olympic Park Foreon Long-term Jeonse Housing 2 is 300 households, about half of this year’s total supply of 698 units. The city plans to expand the supply to 1,272 units in 2025 and 2,155 units in 2026.

The eligibility for Long-term Jeonse Housing 2 is newlywed couples composed of household members without home ownership. Couples who have registered their marriage within 7 years from the announcement date or are scheduled to register within 6 months can apply. Even engaged couples without children can move in. Although rental housing was previously supplied to newlyweds, priority was given to multi-child households, making it difficult for newlyweds to move in.

Incentives are also provided after childbirth post-move-in. These include relaxed income criteria at contract renewal, priority purchase rights after 20 years of residence, and reduced purchase prices. While the principle is to provide incentives only after childbirth post-move-in, the city has allowed incentives even if childbirth occurs after the announcement date or before moving in.

Highly competitive preferred complexes expected among top scorers

Seoul City supplies Long-term Jeonse Housing 2 as newly built housing. It includes purchased housing from reconstruction/redevelopment and station-area housing (purchase type), as well as public housing built on public land such as Wirye and Magok (construction type).

For construction-type housing, candidates are selected starting two years before move-in, once the apartment construction progress exceeds 40%. In the second half of next year, construction-type Long-term Jeonse Housing 2 will be supplied at Wirye A1-14 Block (90 units) and Magok Taxi Garage (61 units) based on this criterion. Subsequently, in the first half of 2026, Songpa Creative Innovation (120 units) will be supplied, followed by Jangji Garage (154 units), Gwanak Culture Plaza (27 units), Seongdui Village (175 units), and Guryong Village (300 units) in the second half of 2026.

Seoul Mayor Oh Se-hoon is announcing the 'Expansion Plan for Public Housing for Newlyweds,' including Long-term Jeonse Housing 2, at Seoul City Hall on the 29th of last month.

Among reconstruction complexes, supply is planned for the first half of next year at Jayang 1 District (177 units), the second half at Miseong Clover (76 units), and Jamsil Jinju (109 units). The supply schedule may vary depending on the speed of redevelopment projects.

The Olympic Park Foreon Long-term Jeonse Housing 2, first supplied in July, is expected to have a high competition rate. It guarantees a minimum 10-year jeonse residence in a newly built apartment, and households with two or more children can purchase the home at 90% of the market price. Existing long-term jeonse housing did not allow conversion to sale.

Competition is expected among top scorers who meet the selection criteria. Long-term Jeonse Housing 2 selects residents by awarding points (maximum 5 points each) for three categories: continuous residence period in Seoul, period without home ownership, and subscription period to the housing subscription savings (combined for couples). A full score (15 points) is given if all three categories exceed 10 years. Ties are resolved by lottery.

Current residents of existing long-term jeonse housing will receive point deductions if they apply for Long-term Jeonse Housing 2. A Seoul City official stated, "The current ordinance applies to existing long-term jeonse housing, but applicants for Long-term Jeonse Housing 2 will also be penalized, and the deduction points will be adjusted downward."

Area and income criteria revisions also key

Before supplying Olympic Park Foreon Long-term Jeonse Housing 2, the city is pushing for revisions to the area criteria based on household size. Under the current Public Housing Special Act Enforcement Rules, households with two members are supplied housing with exclusive areas between 25 and 44㎡. Seoul City is negotiating with the Ministry of Land, Infrastructure and Transport to supply apartments of 49㎡ or larger (49㎡ and 59㎡) to newlyweds.

If the rules are not revised before the Olympic Park Foreon resident recruitment announcement, housing of 39㎡ must be supplied to childless newlywed couples and 49㎡ to households with children, according to current rules. A Seoul City official explained, "We are currently considering supplying units sized 49 to 59㎡, and if the enforcement rules are revised by July, supply can be made according to the new standards." A Ministry of Land official responded, "We agree with the intention to provide larger rental housing to those in need but are reviewing the matter carefully."

The ‘dual-income household income criteria,’ planned to be introduced only for Long-term Jeonse Housing 2, also requires approval from the Ministry of Land. The Public Housing Special Act Enforcement Rules specify that, "If recognized by the Minister of Land, Infrastructure and Transport," up to 50% of the supply can be allocated to priority applicants selected according to separately defined criteria and procedures.

The income criteria for existing long-term jeonse housing are 100% of the average monthly urban worker income for units 60㎡ or less, 120% for units over 60㎡ up to 85㎡, and 150% for units over 85㎡. Long-term Jeonse Housing 2 relaxes these standards to 120% for units 60㎡ or less, and up to 180% for dual-income households. For units over 60㎡, the criteria are 150%, and up to 200% for dual-income households.

The dual-income household income criterion of 200% average monthly income for Long-term Jeonse Housing 2 is the same as that applied to New Home sale housing. A Ministry of Land official said, "The SHift income criteria are set relatively high, so we plan to review them closely, including the actual jeonse price situation."

A city official said, "The relaxation of income criteria for Long-term Jeonse Housing 2 aims to prevent eviction due to income limits and encourage childbirth. Unlike existing rental housing focused on supporting low-income households, the primary goal is to increase the birth rate." He added, "If area and income criteria are not revised, announcements may have to be made according to existing standards, but we plan to negotiate as much as possible."