Recruitment of First Tenants for 1,091 Units of Sale-Conversion Rental Housing

Possible to convert to sale after 6 years of residence
Recruiting residents for 1,091 households nationwide

The first recruitment of tenants for the 'purchase-conversion type rental housing,' where residents can purchase the house after living there for six years, is set to begin.

The Ministry of Land, Infrastructure and Transport announced on the 30th that it will recruit tenants for 1,091 such housing units across nine cities and provinces nationwide starting from the 31st. This measure follows the introduction of purchase-conversion type rental housing in the '8.8 Supply Plan.'

This housing type allows tenants to choose whether to purchase the unit after renting for at least six years. Unlike existing rental housing, which consisted of non-apartment types such as villas and officetels, the purchase-conversion type rental housing will mainly offer medium-sized apartments with exclusive areas ranging from 60㎡ to 85㎡.

The tenant recruitment announcement covers a total of 1,091 units: 317 units of monthly rent type (newlywed and newborn purchase rental) and 774 units of Dundeun Jeonse (jeonse type). The supply is concentrated in the metropolitan area, with 225 units in Seoul, 371 units in Gyeonggi, and 365 units in Incheon.

The recruitment targets differ by type. The Dundeun Jeonse type does not consider income or asset requirements and is supplied at about 90% of the market price. The monthly rent type has the same eligibility as the newlywed and newborn purchase rental.

At the time of moving in, tenants with an average monthly urban worker income of 130% (200% for dual-income households) of the previous year and assets below 362 million KRW can convert to purchase. No subscription savings account is required, and tenants can choose whether to convert to purchase after renting for six years. Those who do not wish to convert or exceed the income and asset requirements can continue to live under the general rental housing system.

Additionally, the purchase conversion price is determined by averaging the appraised value at the time of move-in and the appraised value at the time of purchase. The appraisal value at purchase is set as the upper limit to reduce the burden on tenants.

The recruitment announcement for purchase-conversion type rental housing tenants is conducted by the Korea Land and Housing Corporation (LH). Detailed information such as application methods and housing locations can be found on the LH Subscription Plus platform starting from the 31st.

Lee Ki-bong, Director of Housing Welfare Policy at the Ministry of Land, Infrastructure and Transport, stated, "Following the supply of the first purchase-conversion type rental housing, we will do our best to supply more housing to stabilize the non-apartment market and realize housing stability for the public."