"It hardly feels like public rental. It doesn't seem much different from a newly built apartment."
On the 21st, a visitor who toured e-Pyeonhansesang City Gwanggyo Wellsheim in Woncheon-dong, Yeongtong-gu, Suwon, Gyeonggi, said this. As the preference for "eoljukshin (new build at all costs)" is strengthening in the housing market, Korea Land & Housing Corporation (LH) is supplying ultra-new officetels as "Dundeon Jeonse Dwellings," drawing interest from end users.
The complex is a newly built officetel with three underground floors to 26 aboveground floors, three buildings, and a total of 187 units. LH is supplying the units secured through a purchase commitment method as Dundeon Jeonse Dwellings.
Dundeon Jeonse Dwellings are public rental dwellings in which LH purchases dwellings in city centers and rents them to people without homes at prices lower than market rates. Anyone without a home in the recruitment area can apply without income or asset criteria. Newborn households and multi-child households receive extra points. Rents are set at 90% or less of surrounding market rates, and residents can stay for up to eight years.
The 82-square-meter exclusive type toured that day was differentiated from ordinary officetels starting with its interior layout. Designed as a slab-type layout with three rooms and two bathrooms, it created a space configuration similar to a small to mid-size apartment. The kitchen and living room connected in a straight line, offering a strong sense of openness.
In particular, signs that it targets newlyweds and families of three to four appeared throughout. The master bedroom had a separate bathroom, powder room, and pantry, and the laundry space next to the kitchen was also generous. The two smaller rooms were designed to be the same size, and one had a built-in closet.
Built-in appliances are also provided as standard. A system air conditioner and air purifier are included as options, reducing the initial move-in expense burden.
An LH official said, "Demand is growing for housing quality on par with small to mid-size apartments," adding, "We are focusing on securing high-quality, newly built units to improve perceptions of public housing."
The community facilities also stood out. A kids' room and a gym were created within the complex. The kids' room was arranged with households with infants and toddlers in mind, and the gym was equipped with exercise machines on par with those in private apartments.
The location conditions are also cited as a strength. With Samsung Electronics' headquarters and an industrial complex nearby, demand is expected from people wanting to live close to work. Right next to the complex is Wonil Elementary School, leading to evaluations that it is a so-called "chopuma (an apartment embracing an elementary school)" location. Being on a main road, access to public transportation is also considered good.
The rental terms are also seen as competitive. The deposit is set in the mid-300 million won range. Compared with jeonse prices in nearby newly built complexes, the burden is relatively lower.
A, age 34, who is living on jeonse near Gwanggyo, said, "Because it's newly built, the competition will likely be high, but there's no fear of jeonse scams and we're expecting a baby, so I'm very interested," adding, "If the conditions fit, I definitely plan to apply."
e-Pyeonhansesang City Gwanggyo Wellsheim released its recruitment notice on the 21st. Applications will be accepted from 10 a.m. on June 1 to 4 p.m. on June 4. Winners will be announced on July 24.
Following the government's stance to expand public housing for the middle class, the supply of Dundeon Jeonse Dwellings is expected to increase further. LH plans to supply a total of 1,253 Dundeon Jeonse Dwellings in the Seoul metropolitan area this month alone. By region: 103 in Seoul, 72 in Incheon, and 1,078 in Gyeonggi.
However, competition is expected to be significant. That's because instability in the Seoul metropolitan area's jeonse market has been growing again. According to KB Real Estate, in the third week of May (as of the 18th), the Seoul metropolitan area's jeonse price index growth rate was 0.20%, the sharpest rise this year.
The market expects the popularity of Dundeon Jeonse Dwellings to rise further as the preference for new builds coincides with demand for jeonse safety. With LH as the lessor, there is no concern about jeonse fraud, and the fact that even the middle class can apply is also cited as a strength.
In fact, last year the average competition rate for Dundeon Jeonse Dwellings in Seoul reached 315 to 1. Gyeonggi also recorded an average of 16.6 to 1.