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* It has been translated using AI

Miyoun Lee
Input : 
2026-08-14 14:57:58
Updated : 
2026-08-14 15:32:56
Establishment of 'Universal Public Rental Housing'
Debate controversy over capital gains for extremely small number of winners
Concerns over reducing opportunities to buy a house for homeless people
A view of the construction site of a new apartment building in the city from Namsan, Jung-gu, Seoul. [Newsys]
A view of the construction site of a new apartment building in the city from Namsan, Jung-gu, Seoul. [Newsys]

The government has come up with a plan to first purchase so-called "pick-up" supplies from regulated areas in the Seoul metropolitan area and supply them to public rental housing.

The intention is to reduce the controversy over the market profit of subscriptions that go to very few winners and increase the supply of public housing, but there are concerns among homeless people that even the already narrowed opportunity to buy their own homes may disappear.

According to the government on the 14th, the government decided to establish a "universal public rental housing" in the "quick supply of housing to stabilize the monthly rent and sales market" announced the previous day.

This is a new type of public rental that allows various income classes to live for a long time with affordable rent while having a good location with the quality of private housing.

The government plans to apply a three-bay structure with high preference and secure housing quality equivalent to that of private apartments by upgrading finishing materials. More than half of the total volume is supplied to homeless young people who are in high demand for rent, and the rest is allocated to homeless general households.

The period of residence is also set longer than the existing public lease. The basic period of occupancy is six years, but additional extension is possible for each childbirth, and if there are three or more underage children, they can live for up to 20 years. Specific occupancy standards and rent will be announced separately in the third quarter of this year.

a real estate agency in Gangnam-gu, Seoul
a real estate agency in Gangnam-gu, Seoul

Particularly noteworthy is the "pick-up" volume of regulated areas in the metropolitan area. In the future, if remaining supplies occur after private sales, LH and others will purchase them first and supply them as universal public rental housing.

Currently, if remaining supplies occur due to abandonment of contracts or ineligibility after apartment subscription, they will be drawn and supplied to the general public without homes. In many cases, the initial sale price is applied, so it has been called a so-called "lotto pick-up" in that it is possible to buy one's own house at a lower price than the surrounding market price.

According to the data presented by the government, from June 2025 to May this year, the remaining amount of the exclusive area of 85㎡ or less in the regulated area of the Seoul metropolitan area is about 1,600 households.

The volume itself is around 1,600 households per year, so it does not have a significant impact on the entire housing market, but it has a different meaning for homeless people who have repeatedly been eliminated from the subscription competition. This is because the barrier to entry is relatively lower than that of general subscription, and as it is supplied at the existing sale price, it was possible to expect a profit from the market price if it won.

In response, some point out that the government may reduce the options for homeless people if it changes the number of jobs to public rental. In particular, the recent discussion on the real estate tax reform could increase anxiety and deprivation among end-users who do not own a house.

On the other hand, there is also a counterargument that it cannot be viewed simply as "dismissing the opportunity to pick up". This is because it can reduce market profits that go to only a small number of winners while converting the volume to public rentals that can be stably inhabited by a large number of homeless people for a long time.

In addition, from the perspective of private businesses, it is analyzed that LH and others can lower the risk of unsold housing if they purchase the remaining supplies, and that the government will reduce the supply burden of the private sector in the process of rapid housing supply.

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