The Korea Land and Housing Corporation (LH) will begin construction on 40,000 newly built rental homes in the Greater Seoul area this year, including over 10,000 units in Seoul. Since the implementation of system improvements in July, the average monthly agreements in the region have increased by 482% compared to previous figures.
On October 11, LH announced that it has strengthened support for initial project costs for private developers and implemented improvements in payment based on construction progress to expand the newly built rental housing project in the Greater Seoul area. The number of practical staff related to the Greater Seoul area has increased from 199 at the beginning of the year to 282, with plans to prioritize the hiring of 62 non-regular workers by next month.
The newly built rental agreement allows private developers to pre-agree to sell newly constructed homes to LH after completion, which are then supplied as public rentals to young people and newlywed couples. Typically, residents can move in within 1 to 2 years after construction begins, making it a quick supply method for urban areas. Currently, LH manages 207,000 rental homes nationwide, including 113,000 in the Greater Seoul area and 34,000 in Seoul.
Since August, the average monthly application volume in the Greater Seoul area has increased by 63% compared to the average from April to July. The number of applications passing document review has increased by 49%, with approvals rising by 162% and agreements by 482%. In Seoul, the volume of agreements has increased by 334%.
LH plans to begin construction on over 10,000 units in Seoul and 40,000 in the Greater Seoul area this year, with occupancy expected to start sequentially from the end of next year. Last year, LH recorded 44,000 newly built rental agreements in the Greater Seoul area and 11,000 in Seoul.
Looking ahead, LH has announced a supply plan for the next three years in Seoul, aiming to recruit tenants for a total of 20,528 rental homes across 25 districts. Of these, 14,558 units will be designated for young people, accounting for 70.9%, followed by 3,398 units for newlywed couples (16.6%) and 2,572 units for other categories (12.5%).
By district, Dongdaemun has the highest number of units at 1,920, followed by Guro with 1,900, Gangdong with 1,861, and Gangseo with 1,638.
The government has also reaffirmed its commitment to expanding public rental supply. The Ministry of Land, Infrastructure and Transport outlined in its 'Housing Stability Plan' announced in September that it aims to supply 1.19 million public housing units by 2030, securing over 10% of all housing as long-term public rentals.
Rental prices will be set below market rates depending on the type. For newlywed and newborn families, Type I rentals will be priced at 30-40% of market rates, while Type II rentals will be at 70-80%, allowing residents to stay for up to 20 years. Young rental housing will have rental prices set at 40-50% of market rates.
LH President Lee Seong-hoon stated, “We will focus on rapidly supplying rental housing that young people and newlywed couples can feel in the Greater Seoul area by 2030.”
* This article has been translated by AI.
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