The government will begin recruiting occupants for the 'sale conversion-type purchase rental housing,' which offers opportunities for home ownership after living for six years.
The Ministry of Land, Infrastructure and Transport announced on the 18th that it will recruit 1,713 sale conversion-type purchase rental dwellings and the Ddeun-dun Jeonse nationwide in 11 cities and provinces starting from the 19th, as stated in last year's 'plan to expand housing supply for national housing stability.'
Purchase rental dwellings are public rental dwellings supplied directly by the government, either by purchasing or constructing high-quality dwellings in urban areas.
The sale conversion-type purchase rental dwellings being supplied this time will allow occupants to choose whether to purchase after residing on a rental basis for at least six years. They will be supplied mainly in 'medium-sized' units that include apartments in excellent locations.
The sale conversion-type purchase rental will be divided into the Ddeun-dun Jeonse type that supplies at 90% of the market price regardless of income and asset requirements, and the monthly rental type for those eligible for newlywed and newborn purchase rental. It is also planned to supply the Ddeun-dun Jeonse type, which does not have a sale conversion.
This recruitment announcement for occupants will include 1,534 Ddeun-dun Jeonse type units (including 665 non-sale conversion type) and 179 newlywed/newborn purchase rental units (all for sale conversion). It is planned to focus on supplying in the capital area where demand is high.
Sale conversion will target occupants who meet certain income and asset requirements at the time of occupancy. The criteria are based on last year's average monthly income of urban workers at 130% (200% for dual-income households) and an asset limit of 354 million won. Occupants can freely choose whether to convert to sale after living in rental for six years without using a separate subscription savings account.
If they do not wish to convert to sale or exceed the income and asset requirements, they can continue to live as long-term renters, similar to general purchase rental housing.
Additionally, the sale conversion price will be calculated as the average of the appraised value at the time of occupancy and the appraised value at the time of sale six years later. Setting the appraised value as a cap at the time of sale will help reduce the burden on occupants wishing to secure their own homes.
The recruitment announcement for occupants of this sale conversion-type purchase rental housing will be conducted by the Korea Land and Housing Corporation (LH).
Lee Gi-bong, director of housing welfare policy at the Ministry of Land, Infrastructure and Transport, noted, 'Following the supply of the first sale conversion-type purchase rental housing, I will do my best to ensure that the second recruitment of occupants proceeds without any hiccups to realize national housing stability.'