The Seoul Housing and Urban Development Corporation (SH) supplied 37.7% of its annual target for new public rental dwellings through July this year. In the seven months counted, it supplied just over one-third of the annual plan. As Seoul's jeonse and monthly rents rise, more than 6,000 people are applying for a single household in some public rental dwellings, prompting calls to speed up supply.
According to the Seoul Metropolitan Government and others on the 9th, SH plans to supply 9,777 new public rental dwellings this year, but its results from January to July were 3,685. The achievement rate against the target is 37.7%.
For SH to meet its annual target, it must supply 6,092 dwellings in the remaining five months. That is an average of 1,218 per month. It is 2.3 times the average monthly supply of 526 from January to July.
Public rental dwellings supplied by SH are divided into new supply and resupply. New supply means recruiting the first tenants for dwellings newly secured by SH. Resupply means taking in new tenants for dwellings vacated by existing tenants.
Under SH's tabulation standards, new supply is classified into purchase-type, lease-type, and construction-type. From January to July, 1,890 purchase-type rental dwellings and 1,548 lease-type rental dwellings were supplied. Achievement rates against plans were 40.6% and 30.9%, respectively.
The purchase-type includes five subprojects: Happy Housing, redevelopment rental dwellings, long-term jeonse dwellings, purchase rental dwellings, and youth安心 (Ansim) dwellings. The lease-type is a method in which SH signs a jeonse contract with the landlord for dwellings found by the tenant and then sublets them to the tenant.
The construction-type, in which SH directly secures sites to build dwellings or participates in development and construction, exceeded its annual target. However, the supply volume was 247 dwellings, accounting for only 6.7% of total new supply results.
Looking at results by subproject within the purchase-type, the achievement rate was lowest for redevelopment rental dwellings, which are preferentially supplied to demolition tenants who must vacate their homes during the maintenance project process. Of the annual plan of 704 dwellings, 96 were supplied, leaving the achievement rate at 13.6%.
Shift, the long-term jeonse dwellings where tenants can reside for up to 20 years, also supplied only 249 of the 1,090 planned dwellings. The achievement rate is 22.8%. Jeonse rental dwellings, which fall under the lease-type, supplied 962 of the 3,500 targeted dwellings, recording an achievement rate of 27.5%.
The purchase rental dwellings subproject within the purchase-type supplied 721 of the 1,354 targeted dwellings. The achievement rate was 53.3%, higher than other projects. In the purchase rental dwellings project, SH buys dwellings built by the private sector and rents them to youth and newlyweds at below market rates. Compared with supply through new housing site development or maintenance projects, it has the advantage of securing public rental volume more quickly.
Demand for public rental dwellings far exceeds supply. For the Youth安心 (Ansim) Housing "Hanwha Forena Dangsan" in Dangsan-dong, Yeongdeungpo District, supplied by SH in March, 6,293 people applied for a single 33-square-meter unit. In the second recruitment on July, 5,985 people vied for three units of the same size, with an average competition ratio of 1,995 to 1.
In the recruitment of tenants for long-vacant purchase rental dwellings in March, 1,799 people applied for a single 47-square-meter unit at "Daemyung Alps Hill" in Deungchon-dong, Gangseo District.
An SH official said, "Public rental dwelling tenant recruitment notices with large supply volumes are concentrated in the second half," and added, "We will achieve the annual plan without setbacks by the end of the year."