Seoul, South Korea – A new affordable rental housing program in South Korea has seen an overwhelming response, with over 30,000 applications for just 774 units.
The Korea Land and Housing Corporation (LH) announced on November 26th that its "Ddeundeun Jeonse" program, which allows tenants to rent a home for six years before deciding whether to purchase it, received an average of 40 applicants per unit.
The program, introduced in the government's August 8th housing policy, has proven to be highly popular due to its affordable rents, which are typically 90% of market rates, and the security of a public landlord. If tenants decide to purchase the property after the six-year rental period, the purchase price is determined by the average of the appraised value at the time of move-in and the time of purchase.
The most competitive region was Seoul, where 19,898 people applied for just 64 units, resulting in a competition ratio of 311:1. Other regions with high competition rates included Chungbuk (244:1) and Gyeonggi-do (31:1).
"The high demand is likely due to the combination of affordable rent, long-term stability, and the option to purchase the property at a reasonable price," said an LH official. "We will continue to work towards expanding the supply of affordable housing to enhance housing stability."
The "Ddeundeun Jeonse" program is designed to address South Korea's housing affordability crisis by providing a more flexible and affordable option for homeownership. The overwhelming response to the program highlights the urgent need for affordable housing solutions in the country.
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