Mirinae Jib Sees Lower Competition Due to Policy Loan Cuts... Non-Apartment Types Perform Better Than Expected [Real Estate AtoZ]

Most Apartment-Type Mirinae Jib Deposits Exceed 400 Million Won
Jeonse Loan Limits Reduced Due to Lending Regulations
Apartment-Type Mirinae Jib Tenant Recruitment Scheduled for November

The competition rate for Seoul’s Mirinae Jib long-term lease housing for newlyweds has decreased compared to previous rounds, due to the reduction in policy loan limits. In order to lower the housing cost burden for newlyweds, the city is expanding Mirinae Jib into various types, including non-apartment options. The city plans to conduct the sixth round of Mirinae Jib tenant recruitment within this year.

According to Seoul City and other sources, the fifth round of Mirinae Jib tenant recruitment received 19,266 applications for 485 units, closing with an average competition rate of 39.7 to 1. This marks a significant drop from the previous fourth round, which saw an average competition rate of 64 to 1.

For Cheongdam Le-EL and Jamsil Raemian I’Park, the deposit exceeded 700 million won. Specifically, the deposit for a 49-square-meter unit at Cheongdam Le-EL was 772.98 million won, while a 59-square-meter unit at Jamsil Raemian I’Park required a deposit of 749.58 million won. The competition rate for Cheongdam Le-EL 49㎡ was 16 to 1, and for Jamsil Raemian I’Park 59㎡ it was 51.2 to 1. Mirinae Jib’s lease deposits are set at around 80% of market value, but for apartments in highly sought-after areas, the deposit burden inevitably increases.

The purchase-lease linked type, introduced this year to expand Mirinae Jib supply, recorded unexpectedly high competition rates. Last month, 8,467 applicants vied for 164 Mirinae Jib units, including those at Somi The Class Hangang, resulting in an average competition rate of 51.6 to 1. This is more than 18 times higher than the 2.87 to 1 competition rate seen for newlywed and newborn purchase-lease housing in a similar offering earlier this year.

By project, Sumi The Class Hangang in Yeongdeungpo-gu had the highest competition rate at 114.8 to 1. This was followed by Sky Foret in Dongjak-gu at 114.1 to 1, Supreme The Highum in Gangseo-gu at 70.8 to 1, Le Pied Munjeong in Songpa-gu at 70.6 to 1, and Jayang 1034 in Gwangjin-gu at 63.9 to 1.

Mirinae Jib (Newlywed and Newborn Purchase-Lease Housing II) is a type linked to purchased lease housing, such as residential officetels and urban lifestyle housing. It was supplied at about 50% of the price of standard apartments, and households with children were given the benefit of relocating to Long-Term Lease Housing II, resulting in high demand from newlyweds.

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 from early December. After finishing the announcement, Mayor Oh is leaving the briefing room. Photo by Heo Younghan younghan@

Recently, tighter lending regulations have lowered the policy loan limits, creating a burden for newlyweds. If the lease deposit exceeds 400 million won, the Bogeumjari Jeonse Loan, a low-interest loan from the Housing and Urban Fund, is not available. Most of the newly supplied units in the fifth round of Mirinae Jib had lease deposits exceeding 400 million won. After the lending regulations, the Bogeumjari Jeonse Loan limit for young people dropped from 200 million won to 150 million won, and for newlyweds in the Seoul metropolitan area, from 300 million won to 250 million won. As a result, newlyweds must now secure a larger portion of the funds themselves.

In response, Seoul Mayor Oh Se-hoon criticized the government’s loan limits, pointing out that they are being applied even to rental housing, which is unrelated to rising home prices. Mayor Oh stated, "The policy loan, Bogeumjari Loan, is only available for homes with deposits under 400 million won, but in Seoul, only a quarter of complexes meet this condition. For example, in the past, tenants could move into Mirinae Jib in Seongbuk-gu with their own funds of 90 million won, but now they need 140 million won. By including long-term lease housing, which is unrelated to curbing home prices, the burden on newlyweds has only increased."

Mayor Oh further commented, "The government’s lending regulations are undermining the intent of this program. Although Seoul City has repeatedly requested improvements, the Ministry of Land, Infrastructure and Transport remains unmoved. Shouldn’t 'housing stability,' which is unrelated to controlling home prices, be actively promoted? Regulations that crush the dreams of newlyweds are like 'killing a cow to catch a mouse.'"

Meanwhile, Seoul City plans to supply a total of 3,500 Mirinae Jib units this year, including 1,000 apartments, 2,000 purchase-lease units, and 500 private rental units. The city also plans to provide additional apartment-type Mirinae Jib units in November. There are also plans to hold a writing contest for residents.