‘Government’s public jeonse housing’ vs’Oh Se-hoon’s win-win housing’… Is it possible to stabilize the charter?

▲ An election banner hangs on the outer wall of an apartment in Eunpyeong-gu, Seoul on the 8th, when Seoul Mayor Oh Se-hoon began his term of office.ⓒ Yonhap News

As Seoul Mayor Oh Se-hoon was elected in the 4-7 by-election, Seoul is expected to introduce a long-term jeonse housing’win-win housing’. However, there is a conflict with the’public jeonse housing’ being promoted by the government, and conflicts are expected in the future. In addition, it is pointed out that there is a limit to the quantity of supplies in the market to relieve anxiety in the jeonse market.

According to industry sources on the 9th, Mayor Oh made a pledge of a’win-win housing’ system to supply 70,000 long-term jeonse housing units for young people and newlyweds consumers. The win-win housing system is a structure in which the Seoul City leased private land that is neglected throughout the city to provide housing.

Long-term jeonse housing, also called SHift, was a project promoted by Mayor Oh’s Mayor of Seoul in 2007, and is supplied at less than 80% of the surrounding market price so that homeless people can live for up to 20 years.

Private land owners who provide land are provided with incentives such as land rental payments, tax benefits such as property tax reductions, and increased use areas and floor area ratios for at least 20 years.

In the recent cheonsei crisis, fierce competition is expected as the demand for long-term jeonse housing is high. In fact, according to the Seoul Housing and Urban Corporation (SH), the 39th long-term jeonse housing 1st/priority tenant recruitment recruited at the end of last year resulted in a total of 550 households and 11,669 applicants, resulting in a 21 to 1 competition rate.

However, it is unclear whether 70,000 households will be supplied as planned, as long-term jeonse housing is a project that puts a huge financial burden on SH and a rental fee for private land owners has to be paid.

Meanwhile, from this month, the government is starting to supply full-fledged public jeonse housing for three to four households. It is planning to recruit tenants of 117 households of the first public chartered house in Anyang-si, Gyeonggi-do.

The public jeonse housing offered by the government in the November 19th measures last year was purchased by the Korea Land and Housing Corporation (LH) and SH in the form of a new construction purchase agreement, such as officetels and multi-family houses, which can be quickly built in the city center, as a’charter’ for middle class households It is a new type of housing to supply.

Public jeonse housing is a medium-sized equilibrium with three or more rooms (over 50㎡), and homeless people can move in regardless of their income or assets. The deposit is calculated at the level of 90% of the market price, and you can live in jeonse for up to 6 years.

Unlike existing public rental housing types, public jeonse housing is expected to be fiercely competitive as it does not set income and asset standards. However, this year, LH and SH jointly supply 9,000 units of public jeonse housing plans nationwide, of which only 3,000 units in Seoul.

Considering the amount of demand that remains in the cheonsei market for both win-win housing and public jeonse housing, the supply is small, so this is also a structure that is bound to become a’lotto’ that gives opportunities to very few. It is pointed out that there is a limit to achieving the effect of stabilizing the jeonse market.

Most of all, there are conflicting problems as there are many parts that require cooperation between the central government and the city of Seoul, both for win-win housing and public jeonse housing. If either party disagrees, it is difficult to be promoted unilaterally.

An industry expert said, “It is expected that it will take a long time for win-win housing to come out, so it is not enough to alleviate the recent cheonsei crisis.” Said.