More than 90,000 applicants rushed to the first Happy Housing subscription in Seoul this year. For 1,884 units, 91,772 people applied, with an average competition rate of 48.7 to 1. At one complex in Yongsan, 2,822 people applied for one unit prioritized for young people. As the burden of jeonse and monthly rent in Seoul has grown, demand appears to have concentrated on public rental housing that is cheaper than market rates.
According to the Seoul Housing and Urban Development Corporation (SH) on the 24th, a total of 91,772 people applied for the first Happy Housing tenant and preliminary tenant recruitment subscription of the year, received on the 15th to 17th. Happy Housing is public rental housing supplied at rents lower than surrounding market rates for young adults without homes, college students, newlyweds, older adults, and others.
The hottest competition was at Yongsan Central Park Harrington Square in Hangangno 3-ga, Yongsan District. For one unit of 40 square meters of exclusive area prioritized for young people, 2,822 people applied. The complex is a mixed-use residential and commercial development up to 43 stories high, located near Yongsan Station and Sinyongsan Station.
Songpa District's e-Pyeonhansesang Songpa Park Central also recorded a competition rate of 2,614 to 1. Gwangjin District's DM7 Sejong was 1,300.7 to 1, Gangdong District's Godeok Arteon was 1,253 to 1, and Dongdaemun District's Imun IPARK Xi was 1,064.5 to 1. Most are complexes with good access to downtown or located in large residential areas, where thousands applied for one or two units.
The main reason applicants flocked was low housing costs. In key areas of Seoul, Happy Housing is offered with deposits in the 100 million to 200 million won range and monthly rent under 1 million won. At Yongsan Central Park Harrington Square, the 40.67-square-meter exclusive unit requires a 177 million won deposit and 750,000 won monthly rent. The 59.96-square-meter Happy Housing unit at Helio City in Garak-dong, Songpa District, requires a 216 million won deposit and 790,000 won monthly rent. Compared with a standard lease for the same size contracted on the 10th at an 800 million won deposit and 1.1 million won monthly rent, the deposit is about one-quarter, and the monthly rent is more than 300,000 won lower.
Experts say the housing cost burden on young people in Seoul is showing up in the competition rates for public rentals. Oh Se-hyeong, Director General of the economic policy team at the Citizens' Coalition for Economic Justice, said, "Public housing such as Happy Housing is helping lower housing costs for young people and support housing stability," adding, "There is a need to expand supply more for end users."
However, some also noted that supply and demand by region should be considered together. Ji Gyu-hyeon, a professor at Hanyang Cyber University, said, "In some non-capital regions, Happy Housing faces insufficient demand, leading to vacant homes," adding, "The government should implement supply policies flexibly to match regional supply and demand conditions."
SH will announce the document screening candidates on the 26th. Document submission will take place July 1 to 3, and winners will be announced Oct. 30. Contracts will run Nov. 11 to 17. Newly supplied complexes will allow move-ins after completion, and resupplied dwellings are scheduled for occupancy starting in December.