It has been found that even if a young person without a home wins the lottery, the number of newly constructed apartments available for the "Youth Housing Dream Loan" is decreasing. This is because, with construction costs soaring, it is becoming difficult to find apartments priced below 600 million won, which is the eligibility criterion for the "Youth Housing Dream Loan." In Seoul, the apartments available for purchase using the "Youth Housing Dream Loan" are limited to some micro-housing units. While the number of eligible dwellings increases when going towards the outskirts of the metropolitan area or to rural areas, even this is in limited supply.
However, the government has stated that since this policy is aimed at young people without homes, changes to the eligibility criteria are not being considered.
According to the Korea Housing and Urban Guarantee Corporation (HUG) on the 21st, HUG launched the "Youth Housing Dream Loan" on the 18th.
The "Dream Housing Subscription" is a policy financial product that allows young people without homes (aged 39 or younger at the time of winning the lottery) to borrow housing funds at low interest rates if they win the lottery. The eligibility criteria state that unmarried young households must have an annual income of 70 million won or less, newlywed couples must have a combined annual income of 100 million won or less, and a net worth (as of 2025) of 488 million won or less.
This product refers to dwellings with a dedicated area of 85 square meters or less (100 square meters or less in non-urban towns), and an assessed value of 600 million won or less. The loan limit is 300 million won for unmarried individuals and 400 million won for newlywed couples. A loan-to-value (LTV) ratio of up to 70% applies, but for first-time homebuyers, the LTV can be increased to 80%, with a debt-to-income (DTI) ratio of 60%. The interest rate on the loan ranges from 2.4% to 4.15%. Favorable interest rates apply in cases of purchasing regional apartments, marriage, childbirth, and similar situations.
Despite the launch of the "Youth Housing Dream Loan," young people without homes face limited opportunities to even challenge for a lottery in a market where available housing is scarce. According to Real Estate R114, the total general sale volume nationwide in the first quarter of this year was 12,358 units, the lowest level since the first quarter of 2009 (5,682 units). This was due to construction firms postponing sale schedules ahead of the early presidential election in June.
Even when housing sales occur, the soaring construction costs are driving up sale prices, thereby limiting the options for apartments. This situation is particularly challenging in Seoul, where it is difficult to find a home using this loan due to high sale prices.
According to the March apartment sale price trends from HUG, the sale price per square meter for apartments below 60 square meters in Seoul reached 13,508,000 won. If one wins the lottery for a 60 square meter apartment, the sale price is 810,480,000 won. For apartments exceeding 60 square meters and up to 85 square meters, the sale price is 14,039,000 won per square meter, resulting in a sale price of 1,193,315,000 won for winning the lottery for 85 square meters. This level far exceeds the eligibility criteria for the "Youth Housing Dream Loan."
Based on last year's sale volume, only some micro-housing units, such as the 39 square meter at "The Shop First World" in Jungnang-gu and the 37 square meter and 42 square meter apartments at "Gaepong Louvre" in Guro-gu, had sale prices below 600 million won.
At least by expanding the area into the metropolitan region, in Gyeonggi Province, the sale prices per square meter for dwellings are 6,899,000 won for those below 60 square meters and 6,830,000 won for those exceeding 60 and up to 85 square meters, allowing for the discovery of dwellings priced below 600 million won. According to the Korea Real Estate Board's subscription home, the 70 square meter and 84 square meter units at "Yangju Station Jeil Punggyeongchae Winners Sky" in Yangju City, Gyeonggi Province, meet the loan conditions. The 84 square meter at "Hillstate Yongin Mark Valley" in Cheoin-gu, Yongin City, Gyeonggi Province, also had a sale price below 600 million won.
As one moves out of the metropolitan area into rural regions, the number of dwellings available for purchase under this loan increases. In line with this, the government has decided to apply a 0.2 point favorable interest rate for those who acquire dwellings in rural areas.
As the rise in sale prices continues, voices of dissatisfaction are emerging, particularly among young people residing in the metropolitan area such as Seoul. A person in their 30s identified as A, who subscribed to the "Youth Housing Dream Subscription," noted, "Even if I win the lottery in Seoul, it seems difficult to utilize the 'Youth Housing Dream Loan,' and I am contemplating whether I should apply for a lottery in Gyeonggi Province."
However, the Ministry of Land, Infrastructure and Transport has drawn a line, stating that there are no plans to change the eligibility requirements for the "Youth Housing Dream Loan." A ministry official explained, "Essentially, this policy is aimed at young individuals without homes, and those seeking loans for apartments priced above 600 million won are not a priority for policy targets," adding, "This standard was set considering the available resources."