The rental housing project aimed at newlywed and newborn households has been successful. In Seoul, the competition ratio for rental housing reached as high as 118 to 1.
As newlywed and newborn households experience increased housing burdens due to high house prices, they seem to have flocked to rental housing, where they can live at lower prices than market rates with less concern about losing their deposits.
According to the Ministry of Land, Infrastructure and Transport on the 18th, the Korea Land and Housing Corporation (LH) announced that from July 7 to 9, 6,160 applications were received for the 787 households available in the newlywed and newborn I rental housing project. The competition ratio is 7 to 1.
The newlywed and newborn rental housing is targeted at (prospective) newlyweds and households with newborns married within seven years. The Type I newlywed and newborn rental housing offers multi-family and multi-unit housing at 30 to 40% below market rates, allowing residency for up to 20 years.
The competition ratio for newlywed and newborn rental housing was the highest in Seoul. The ratio in Seoul recorded 66 to 1, more than nine times higher than the national average. In Dunchon-dong, Gangdong-gu, a rental housing project saw a ratio soar to 118 to 1, with 355 applicants for 3 available units. In Seoncheon-dong, Songpa-gu, 267 applicants vied for 3 units.
The competition for rental housing in the Gyeonggi Province was relatively lower compared to Seoul. In the northern Gyeonggi area, the competition ratio was 24 to 1. In the Bujeong-dong area of Hwaseong, 300 people applied for 150 units available. In Geumgwang district in Seongnam, the ratio was recorded at 17.3 to 1, with 138 applications for 8 units.
Northern Gyeonggi recorded a competition ratio of 9 to 1. The competition was most intense at the rental housing located in Uijeongbu-dong, Uijeongbu City, where 93 people applied for 6 units, resulting in a ratio of 15.5 to 1.
The competition ratio for rental housing in Incheon and Bucheon was 8 to 1.
The enthusiastic response from newlywed and newborn households to rental housing is due to 'value for money.' It is attractive to newlywed and newborn households struggling with high housing prices that they can live at a lower price than market rates long-term.
An LH official noted, 'There is a clear advantage in that we consider excellent locational conditions and the quality of dwellings right from the purchase.' They added, 'The significantly lower prices compared to surrounding market rates have garnered high interest from consumers.'
This official added, 'Especially for newlywed (newborn) rental housing, we strive to only supply dwellings that meet sufficient conditions for families with multiple children, such as room count, transportation, and school districts.' They emphasized, 'LH will continue to work to provide suitable dwellings for various social classes centered on the needs of not only newlywed (multiple children) households but also youth and the elderly.'