SH Corporation "Land Lease Housing, Own a Home for 100 Million Won with Mortgage Support"

Assuming 80% Loan Application for Nanum-type Mortgage
1,623 Land Lease-type Sale Housing Units Supplied

An analysis suggests that utilizing exclusive mortgage products under the government’s public sale policy ‘New:Home’ for land leasehold housing could enable homeownership with a personal burden of around 100 million KRW. There is a claim that it is necessary to provide exclusive shared-type mortgages for land leasehold housing to help low-income households secure their own homes.

Seoul Housing and Communities Corporation (SH Corporation) published a policy report titled ‘Is it possible to own a home in Seoul with 100 million KRW?’ and analyzed on the 12th the positive impact of land leasehold sale housing on housing stability.

The sale price of land leasehold housing (Baeknyeon Housing) supplied by SH Corporation is 350 million KRW for a 59㎡ unit in Godeok Gangil Complex 3, and 490 million KRW for an 84㎡ unit in Magok Complex 16. Land leasehold sale housing refers to housing where the public sector owns the land and only the building is sold. It is characterized by a lower sale price compared to private sale apartments.

When purchasing these houses, if 80% of the sale price is covered by a shared-type mortgage loan (at an interest rate of 1.9%), the initial burden for Godeok Gangil Complex 3 (59㎡ exclusive area) would be 70 million KRW. For Magok Complex 16 (84㎡), it would be possible to purchase with 98 million KRW. The estimated monthly principal and interest repayment is about 830,000 to 1,000,000 KRW for Godeok Gangil Complex 3, and about 1,160,000 to 1,400,000 KRW for Magok Complex 16.

Applying the shared-type mortgage policy can provide support of approximately 140 million to 210 million KRW per household for young households. The burden including principal and interest when moving into land leasehold housing is around 1 million KRW. The government currently does not include land leasehold sale housing in the target for exclusive shared-type mortgage support.

SH Corporation emphasized, "To reduce the initial financial burden for non-homeowning tenant households in Seoul and the metropolitan area and to supply housing at reasonable prices, it is necessary to expand the supply of land leasehold sale housing."

Kim Heon-dong, President of SH Corporation, stated, "To stabilize housing prices in Seoul, it is necessary to expand the application of land leasehold sale housing by creating ‘Gold Towns’ involving SH Corporation in new towns in the metropolitan area. Especially, government support should back this to increase homeownership among households with insufficient asset accumulation."

So far, SH Corporation has supplied 1,623 land leasehold sale housing units through pre-subscription. The main subscription will be held in the second half of next year. Magok 10-2 is scheduled for December next year, Godeok Gangil 3 phases 1 and 2 for August 2026, and Magok Complex 16 for February 2027.