Seoul City to Recruit 300 Long-Term Jeonse II Units on July 23-24
Exclusive 49㎡ for Childless Newlyweds, 59㎡ for Families with Children
Total Asset Criteria Introduced... Financial Assets Included, Must Not Exceed 655 Million KRW
Supply Scheduled for August at Jayang-dong Lotte Castle Eastpole and Others
Seoul City will begin accepting applications on the 23rd for the first move-in of the ‘Long-term Jeonse Housing II’ prepared for newlyweds. The first housing complex is ‘Olympic Park Foreon’ in Gangdong-gu, Seoul, where 300 households will be recruited. Dual-income newlyweds with a monthly average income of 9.74 million KRW or less can live there for at least 10 years with a deposit in the mid-300 million KRW range. If they have children, they can renew their lease regardless of income or asset criteria.
Seoul Mayor Oh Se-hoon announced on the 10th at Seoul City Hall that 300 units of long-term lease housing II (Shift2) for newlyweds will be officially supplied. He stated that the 300 newlywed households selected this time will move into Olympic Park Foreon in Dunchon-dong, Gangdong-gu starting early December. After the announcement, Mayor Oh is leaving the briefing room. Photo by Heo Younghan younghan@
Seoul City announced on the 10th that it will accept applications for the first complex of Long-term Jeonse Housing II, Olympic Park Foreon, targeting newlyweds or prospective newlyweds, on the SH Corporation website from the 23rd to the 24th. Long-term Jeonse Housing II is rental housing that provides stable housing and opportunities to own a home for newlyweds planning to have children or get married.
Seoul Mayor Oh Se-hoon said, "Long-term Jeonse Housing allows residents to live on a Jeonse lease for 20 years, and in Gangnam, some places offer prices 30-40% lower than Jeonse for the same size," adding, "For this Long-term Jeonse Housing II, we applied groundbreaking criteria such as relaxing income requirements. If the income criteria are too strict and limited only to low-income groups, it would be unattainable, but this time the criteria have been considerably relaxed."
Up to 20 years residence possible after childbirth... Deposit from mid-300 million to early 400 million KRW =
Seoul City supplies Olympic Park Foreon Long-term Jeonse Housing II units of 49㎡ to childless households and 59㎡ to households with children. There are 150 units for each size. A minimum residence of 10 years is guaranteed, and if children are born, the residence period can be extended up to 20 years. The Jeonse deposit is 352.5 million KRW for 49㎡ and 423.75 million KRW for 59㎡. As of this month, the Jeonse market price for the same area is about 600 million KRW and 800 million KRW, respectively.
Eligible applicants are newlyweds who have registered their marriage within 7 years from the date of marriage registration or prospective newlyweds who plan to register their marriage within 6 months from the recruitment announcement date. Both spouses must not have owned a house within 5 years from the announcement date.
Incentives are also provided to households that have children after moving in. They can renew their lease every 2 years regardless of income or asset criteria. The residence period can be extended from 10 to 20 years. Households with two or more children are granted a priority purchase right to buy their Long-term Jeonse Housing at up to 20% below market price. If the number of household members increases due to additional children after moving in, support is provided to move to a larger unit starting from the 10th year of residence.
Han Byung-yong, Director of Seoul City Housing Policy Office, said, "For Olympic Park Foreon, we applied 75% of the surrounding market price as a standard, but since the appraisal timing was early, prices rose in the meantime, so it is supplied at 50-60% of the market price. The deposit can only be increased by up to 5% at each 10-year renewal. Future new supplies will be provided at 80% or less of the surrounding market price," he explained.
Dual-income earning 9.74 million KRW monthly can apply, total asset limit of 650 million KRW introduced
Seoul City lowered the income criteria for newlyweds compared to existing Long-term Jeonse Housing. For units under 60㎡ exclusive area, the monthly average income must be 120% or less of the urban worker household average (180% for dual-income households), and for units over 60㎡, 150% or less (200% for dual-income households) to be eligible. Olympic Park Foreon only supplies units under 60㎡ exclusive area. Dual-income newlyweds without children can apply if their monthly average income is 9.74 million KRW or less. Dual-income households of three can apply with 12.95 million KRW, and four-person dual-income households with 14.84 million KRW.
Income level is prioritized when selecting tenants. 30% of units are preferentially supplied to newlyweds with lower incomes. For Olympic Park Foreon, households with urban worker monthly average income 100% or less (150% or less for dual-income) for units under 60㎡ are prioritized. For units over 60㎡, priority is given to those with 120% or less (180% for dual-income).
A total asset criterion is established to prevent high-asset individuals from moving in. Applicants can apply for Long-term Jeonse Housing if their total assets, including financial assets, are 655 million KRW or less. Total assets include real estate, automobiles, general assets, and financial assets, excluding liabilities. Previously, only the value of automobiles and real estate was considered for Long-term Jeonse Housing.
Han Byung-yong, Housing Policy Director, explained, "The asset criterion at move-in is 655 million KRW, but the central government sets it at 345 million KRW. Considering Seoul’s housing and Jeonse prices, we were asked to apply 1.9 times that amount. We plan to consult with the Ministry of Land, Infrastructure and Transport to apply this flexibly depending on the housing size."
To expand opportunities for newlyweds, the no-home ownership bonus point criterion is abolished, and points are awarded based on continuous residence period in Seoul and the number of housing subscription savings payments. Full points are given for continuous residence of 10 years or more and 120 or more payments. No points are given based on the number of children. However, if there is a contract for Long-term Jeonse Housing within 3 or 5 years from the recruitment announcement date or other Long-term Jeonse Housing contracts, points are deducted.
The document screening results for Olympic Park Foreon Long-term Jeonse Housing II will be announced on the 9th of next month, and the final winners will be announced on October 7. Winners can move in starting December 4.
Next month, recruitment for 288 households including Lotte Castle Eastpole
Seoul City plans to recruit tenants for 288 Long-term Jeonse Housing II units next month. The supply includes ▲177 units in Jayang 1, Gwangjin-gu (Lotte Castle Eastpole) ▲35 units in Munjeong 3, Songpa-gu ▲33 units in Yeokchon 1, Eunpyeong-gu ▲18 units in Bongcheon, Gwanak-gu ▲16 units in Gaebong, Guro-gu ▲9 units in Gireum, Seongbuk-gu. Lotte Castle Eastpole in Jayang-dong will be supplied in 79㎡ and 82㎡ units. A recruitment announcement for 500 units is also planned in December.
Seoul City plans to supply more than 1,000 Long-term Jeonse Housing II units in the second half of the year and is discussing with the government to expand supply in the long term. Han Byung-yong, Housing Policy Director, said, "We are exploring available land for rental housing supply with the Ministry of Land, Infrastructure and Transport. We are closely consulting on developing nearby old public offices and closed school sites," adding, "Some units vacated after exceeding 20 years of Long-term Jeonse supply will also be supplied as Long-term Jeonse Housing II."
Seoul Mayor Oh Se-hoon said, "There are 32,000 newlywed couples born each year, and we plan to supply more than 4,000 units annually until 2026, with up to 1,000 units supplied within this year. I believe starting is half the battle, and if the government helps, we can supply more units at a faster pace," he said.
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