Youth Housing Loans Up to 80% of Sale Price
Priority Supply Ratio for Newborns Increased
Public Housing Supply at a Record High of 252,000 Units
Support for Market Liquidity
'Jupjup' Subscriptions to Be Provided Only to Genuine First-Time Homebuyers
On the 13th, the Ministry of Land, Infrastructure and Transport (MOLIT) announced the '2025 Major Work Plan of the Ministry of Land, Infrastructure and Transport' at the Government Seoul Office, pledging unwavering expansion of housing supply. To support young people in purchasing their own homes in the first half of this year, loan products with a minimum annual interest rate in the 2% range will be launched, and the priority supply ratio for newborns in special supply for newlyweds will be increased. Public housing will be supplied at a record high scale of more than 250,000 units, and newly built purchase rental housing aims to supply a total of 110,000 units by the end of the year.
Youth loans up to 80% of sale price... Priority supply ratio for newborns ↑
The Ministry of Land, Infrastructure and Transport announced that it will launch the Youth Housing Dream Loan in the first half of this year, supporting loans up to 80% of the sale price at a minimum annual interest rate in the 2% range to reduce the housing cost burden for young people who are new to society. It will also promote the supply of 16,000 units of purchase rental housing with conversion to sale and other Youth Hope Dream Housing.
The priority supply ratio for newborns in private sale housing will be expanded from about 20% in the special supply for newlyweds to 35%. Priority supply for newborns will also be newly established in public sale housing, significantly increasing the annual housing supply for childbirth households to 120,000 units.
Benefits for subscription related to marriage and childbirth will also be expanded. For example, in the special supply for newlyweds, the applicant's pre-marriage winning history will be excluded, and an additional special supply opportunity will be granted once in case of childbirth.
In response to the aging trend, a public contest will be promoted for 1,500 units of Silver Stay, a private rental housing equipped with customized facilities and services for the elderly, and 3,000 units of public rental housing for elderly welfare will also be supplied.
Housing affected by jeonse fraud will be purchased on a scale of 7,500 units annually, and residents will be allowed to live rent-free for up to 10 years using auction profits. To prevent additional jeonse fraud damage, the Safe Jeonse application (app) will provide a risk index that comprehensively evaluates the number of guarantees issued by landlords and compliance status, and information on similar properties comparable to interested properties will also be expanded.
Public housing supply of 252,000 units 'record high'... Market liquidity support
Newly built purchase rental housing, which can be moved into in a short period through purchase commitments by Korea Land and Housing Corporation (LH), will supply a total of 110,000 units over two years by the end of this year. To speed up supply, payment will be made first at the start of construction, and the recruitment period for tenants will be advanced from after completion to three months after the start of construction. Through this, 42,000 units contracted last year will also start construction as much as possible in the first half of this year.
The Real Estate Development Project Permit Support Center will be established in the first half of the year. This is a measure to support local governments' prompt project approval for private housing projects. The period during which pre-sale is restricted when a construction company receives a business suspension order will be halved. In addition, with the capital expansion of the Housing and Urban Guarantee Corporation (HUG), market liquidity supply will be supported through additional public guarantees exceeding 30 trillion won. The price and supply inspection system with related organizations such as the Ministry of Economy and Finance and the Financial Services Commission will operate continuously.
This year, public housing will be supplied at a record high scale of 252,000 units, and construction-type housing will start construction of 74,000 units, an increase of more than 20,000 units compared to last year. This is a measure to supplement the contracted private housing supply. In particular, 20% of the planned volume will be completed within the first half of the year to allow early realization of the effects of permits and construction starts.
Main subscriptions for 28,000 units, including 8,000 units in the 3rd new towns, will also be promoted. District plans for 166,000 units will be approved in cities such as Uiwang, Gunpo, and Ansan in Gyeonggi Province, and district designations for 71,000 units will be initiated in Yongin Idong and Guri Topyeong. New housing sites will be announced at a scale of 30,000 units in the first half of the year.
The supply base of the private housing market will be expanded by revising the maintenance project system. Resident inconvenience and changes in residential environment will be reflected in the reconstruction diagnosis criteria, and redevelopment requirements will be improved by including unauthorized buildings in the scope of old and poor buildings. Institutional improvements to support the improvement of old houses, such as simplifying remodeling project procedures, establishing change permit procedures, and preparing a construction cost verification system, will also be promoted. All are planned to be implemented within the first half of this year.
The leading districts of the 1st new towns will complete the establishment of special maintenance plans within the year, and leading districts in old local planned cities will also be selected within the year. To revive the sluggish local construction market, the mortgage guarantee limit for corporate restructuring (CR) REITs that directly purchase unsold houses will be raised from 60% to 70% of the existing appraised value. In addition, guarantee fees for local construction sites will be reduced by up to 20% until the end of the year.
'Jupjup' supply to genuine home seekers without housing
Unranked subscription, so-called 'jupjup', which fuels market overheating, will be improved to supply to genuine home seekers without housing. To eradicate fraudulent subscriptions, document collection and verification procedures regarding dependents and actual residence will also be strengthened within the first half of the year.
In addition, a plan to differentiate interest rates for the Didimdol (purchase) and Buteemok (jeonse) loans, which are policy financial loans for low-income households, will be reviewed. To prevent excessive jeonse loans, HUG's jeonse loan guarantees will also be improved to consider the borrower's repayment ability such as income and existing loans when calculating guarantee limits. For Didimdol loans, a plan to exempt fees (1.2% fee charged for early repayment within 3 years after loan execution) for early repayment will be implemented by the end of this year.
To expand tenants' housing choices, a new type of long-term private rental housing stably operated by REITs and others will also be introduced in the first half of the year. A leading project contest for 3,000 units will be promoted in the 3rd new towns and other areas.
To enhance the soundness of real estate project financing (PF), project feasibility evaluations will be strengthened. Incentives such as floor area ratio will be provided to support stable project promotion through business structure improvement.
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