Korea Land and Housing Corporation (LH) announced on the 7th that it will begin accepting applications for rental housing purchases aimed at young people without homes, newlyweds, middle-class individuals, and low-income families.
The rental purchase program is a system where LH buys newly built and existing dwellings with good transportation accessibility in urban areas and rents them out at affordable prices. Last year, the average competition ratio for youth rental dwellings was 53 to 1, and for newlywed and newborn rental dwellings, it was a high 6 to 1.
Through this announcement, LH will supply a total of 3,003 units nationwide. By type, there are 1,666 youth rental dwellings and 1,337 newlywed and newborn rental dwellings.
Youth rental dwellings are provided for individuals aged 19 to 39, college students, and job seekers. By region, the metropolitan area, including Seoul, Gyeonggi, and Incheon, has 767 units, while other regions have 899 units.
Rental conditions are set at around 40 to 50% of nearby market prices, and residents can stay for up to 10 years (20 years if they marry after moving in). Reflecting the demand of young people who frequently move for reasons such as study or employment, the dwellings will be equipped with built-in facilities optimized for single occupancy, such as refrigerators, washing machines, and air conditioners.
Newlywed and newborn rental dwellings are provided for (prospective) newlyweds and families with newborns within 7 years of marriage. By region, the metropolitan area, including Seoul, Gyeonggi, and Incheon, has 654 units, while other regions have 683 units.
Newlywed and newborn rental dwellings are classified into two types, I and II, based on income and asset criteria. Type I rental dwellings for newlyweds and newborns supply multi-family and multi-unit dwellings at 30 to 40% of the market price, allowing residents to stay for up to 20 years.
Type II newlywed and newborn rental dwellings are provided in a quasi-rental style (80% deposit of rental conditions, 20% monthly rent) for apartments and officetels at 70 to 80% of the market price, resulting in a lower rental burden. Residents can stay for up to 10 years (14 years if they have children).
This recruitment will take place from the 7th to the 9th of this month. LH plans to notify those selected for document review in April and verify the eligibility for residency, including income and asset statuses, to announce preliminary residents in June.