Impact of Loan Regulations Leads to Reduced Policy Loan Limits
Competition Ratio Falls Below Fourth Round's 64 to 1
The average competition ratio for 'Mirinaejip' units, which include reconstruction complexes in the Gangnam area such as Cheongdam Le El and Jamsil Raemian I-Park, reached 39.7 to 1. The ratio was lower than previous rounds, as the latest offerings included complexes with high jeonse deposits and were affected by the loan restrictions implemented on June 27.
According to the Seoul Housing and Communities Corporation on August 15, a total of 19,266 people applied for 485 units in the fifth round of Mirinaejip tenant recruitment, resulting in an average competition ratio of 39.7 to 1. This marks a decrease compared to the fourth round in April, when the average competition ratio was 64 to 1.
Seoul Mayor Oh Sehoon is having a conversation with a resident couple at 'Mirinaejip' in Jayang-dong, Gwangjin-gu, visited last July. Photo by Seoul City
High Jeonse Deposits a Burden... Cheongdam Le El Sees Double-Digit Competition Ratios
The highest competition ratio was recorded for The Sharp Gangdong Central City 59㎡, where 743 people applied for 3 units, resulting in a ratio of 247.7 to 1. At Hillstate Jangseungbaegi Station 59㎡, 2,978 people applied for 15 units, closing at a ratio of 198.5 to 1.
Cheongdam Le El and Jamsil Raemian I-Park, where the jeonse deposits exceeded 700 million won, saw only double-digit competition ratios. For Cheongdam Le El 49㎡, the Mirinaejip jeonse deposit was 772.98 million won, while for Jamsil Raemian I-Park 59㎡, it was 749.58 million won. The Mirinaejip jeonse deposit is set at about 80% of the market price. The competition ratio for Cheongdam Le El 49㎡ was 16 to 1, and for Jamsil Raemian I-Park 59㎡, it was 51.2 to 1.
This is attributed to two factors: the reduction in the policy loan limits for jeonse loans such as the Bogeumjari Jeonse Loan due to the June 27 loan regulations, and the high jeonse prices, both of which have increased the burden on newlywed couples. If the rental deposit exceeds 400 million won, tenants are not eligible for the Bogeumjari Jeonse Loan, which is a low-interest loan provided by the Housing and Urban Fund. Except for Hillstate Jangseungbaegi Station 44㎡ (332.28 million won) among the new fifth-round Mirinaejip units, most of the jeonse deposits exceeded 400 million won. After the loan regulations, the Bogeumjari Jeonse Loan limit was lowered from 200 million won to 150 million won for young people, and from 300 million won to 250 million won for newlywed couples in the Seoul metropolitan area.
'Villa Mirinaejip' to Be Supplied for the First Time in September
The Seoul Metropolitan Government will supply non-apartment Mirinaejip units such as villas and officetels to reduce the housing cost burden for newlywed couples. On August 29, the city will announce the recruitment of tenants for 149 units in seven Mirinaejip locations, and accept applications from September 17 to 19. A three-day pre-disclosure period will be held prior to applications, from September 15 to 17. The announcement of document screening candidates will be made on September 23, and move-in is scheduled for February to April next year.
The non-apartment Mirinaejip units to be supplied next month include: 16 units at 652-3 Munjeong-dong, Songpa-gu; 11 units at 341-1 Dangsan-dong 6-ga, Yeongdeungpo-gu; 23 units at 199-1 Junggok-dong, Gwangjin-gu; 10 units at 497-2 Sangdo-dong, Dongjak-gu; 53 units at 105-97, 1 Sangbong-dong, Jungnang-gu; 30 units at 18-40, etc., Ui-dong, Gangbuk-gu; and 6 units at 886-8 Hwagok-dong, Gangseo-gu, totaling 149 units. Most of the units have an exclusive area of approximately 45 to 59㎡.
Mirinaejip is a low birthrate housing policy designed to address the declining birthrate and promote housing stability for newlywed couples. If tenants have a child, their residency period can be extended for up to 20 years, and they are given the opportunity to purchase the unit at a price lower than the market rate. Non-apartment Mirinaejip units are linked to purchased rental housing such as residential officetels and urban lifestyle housing, with rental deposits set at about 50% of the surrounding apartment market price. If a tenant gives birth while living in a purchased rental unit, they are given priority to apply for long-term jeonse housing after 10 years of residence. The city aims to supply 3,500 Mirinaejip units this year.
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