The housing rental assistance program 'Dundun Housing,' introduced by the Korea Land and Housing Corporation (LH), has been found to have significantly undersupplied. Although attempts were made at the government level to support the 'villa rental market,' which was hit hard by 'rental fraud,' the target demographics of 'newborn and multi-child households' appear to have shunned the program.
On the 10th, according to LH and industry sources, the 'rental assistance type Dundun Housing' that LH recruited last month has confirmed undersupply in most regions excluding Seoul and Gyeonggi Province. The total number of supplied units is 2,800. Among these, the metropolitan area had 521 units: 249 in Seoul, 10 in Incheon, 165 in southern Gyeonggi, and 97 in northern Gyeonggi, while the remaining regional supply amounts to 2,279 units. The Ministry of Land, Infrastructure and Transport and LH decided not to disclose specific competition ratios.
An LH official noted, 'While the metropolitan area including Seoul, Incheon, and Gyeonggi has filled all its units, most areas in the provinces have not reached even the minimum quota.'
'Rental assistance type Dundun Housing' is a rental housing program designed for non-apartment dwellings such as villas, multi-family homes, and urban residential houses. It was introduced with a method where LH first conducts right analysis and then signs lease contracts to re-lease to occupants. This approach is interpreted as a measure to preemptively prevent the possibility of 'rental fraud' and secure transaction stability.
LH stated that if it is a household with a newborn or multiple children without housing, they can reside for up to 8 years regardless of income or assets, receiving support for security deposits up to 200 million won in the metropolitan area, 120 million won in large cities, and 90 million won in other regions. However, given that the maximum security deposit in Seoul is 300 million won, it seems that multi-family and multi-generational housing will be practically possible.
Incheon Urban Corporation separately recruited for the rental assistance type Dundun Housing, but performance compared to the support criteria was poor. Incheon Urban Corporation mixed the rental assistance type dwellings of 'Cheonwon (1,000 won per day) housing' with 'newlywed/newborn type II' and the rental assistance type Dundun Housing for recruitment last month. Out of a total of 500 units, 300 units were received for the rental assistance type Dundun Housing. In the results, the competition ratio for the newlywed/newborn type II that includes apartments was 6.2 to 1, while the rental assistance type Dundun Housing was only 2.2 to 1.
Opinions in the market suggested that the undersupply of LH Dundun Housing was anticipated. This is because households with children, such as newborns and multi-child families, do not prefer villas as much. While there is a high level of demand for public rental apartments, the demand for rentals in villas can only decrease due to the lack of reflection of investment needs, as they are less convenient for child-rearing.
An official from a public institution expressed doubt, stating, 'I wonder if there will be a demand for public rentals in densely populated villa areas that require carrying babies up and down stairs or pushing strollers.' They added, 'This was a system intentionally created to revitalize the villa market, and perhaps there was insufficient market analysis.'