Kim, a 33-year-old office worker planning to marry early next year, recently applied for special supply units at SH's Magok District 17 land-lease housing but was unsuccessful. The competition ratio for youth special supply, which Kim and his fiancée each applied for, reached 164-to-1. Despite failing to win, Kim plans to try again for the Godeok-Gangil District 3 subscription scheduled for the second half of this year. "Most Seoul apartments cost around 1.5 billion won these days, and even new developments have very high prices," Kim said. "I'm very interested in public housing, especially land-lease housing that requires less upfront capital."
According to real estate industry sources on the 16th, public housing types requiring lower initial funding—such as land-lease and equity-accumulation housing—are becoming viable options for young people and newlyweds struggling with expensive home prices and high sale prices. Though supply is limited, these units are significantly cheaper than private apartments, and the reduced burden of initial capital amid tightened lending regulations is gaining attention.
Land-lease housing supplied by Seoul Housing & Communities Corporation (SH) is called "half-price apartments" because the public retains land ownership and sells only the building, substantially lowering prices. The ability to use Didimdol loans (up to 60% LTV) is also attractive, reducing initial capital burden even under stricter lending rules. However, critics point out that residents must pay monthly land rent and cannot benefit from land value appreciation since they don't own the land.
Young buyer demand surged for Magok District 17 land-lease housing in Gangseo-gu, Seoul, which held special supply subscriptions last week. Of 162 special supply units, youth category competition reached 164-to-1 and newlywed competition reached 101-to-1. The sale price for 59㎡ units was set in the 300-million-won range. However, residents must pay 600,000-700,000 won monthly in land use fees. SH plans to supply 215 units at Godeok-Gangil District 3, another land-lease development, in October. High competition is expected, as some categories exceeded 100-to-1 during the 2023 preliminary subscription.
Gyeonggi Housing & Urban Development Corporation (GH) will also debut equity-accumulation housing in Suwon Gwanggyo New Town this year. Of 600 units at Gwanggyo Block A17, scheduled for October subscription, 240 units (40%) will be offered under this model. Buyers initially acquire only 20-25% of the housing equity at move-in, purchasing remaining shares over up to 30 years. Joint ownership with the public continues until full equity is secured. Requirements include 5-year residency obligation, 10-year resale restriction, and sharing part of capital gains with the public upon early sale. While some view potential gains negatively, many see it as a housing stability option for young people.
Korea Land & Housing Corporation (LH) plans to supply 3,563 profit-sharing housing units across four blocks in third-generation new towns including Bucheon Daejang, Suwon Dangsu, and Goyang Changneung this year. Under this structure, if residents sell back to the public after a certain period, gains or losses are shared—after the 5-year residency requirement, sellers receive 70% of capital gains while LH takes the remainder.
Experts advise diversifying housing models beyond long-term jeonse and rental housing to include land-lease and equity-accumulation options, while increasing supply as rising prices make homeownership increasingly difficult for young people and newlyweds. Park Won-gap, senior real estate specialist at KB Kookmin Bank, said: "As private sale prices have risen sharply and accessibility has declined, young people and newlyweds are choosing public housing as a realistic second-best alternative. Given the increased capital needed for young generations to purchase homes, various approaches like land-lease and equity-accumulation housing are meaningful in expanding housing supply."
Another expert requesting anonymity noted: "While lower prices are advantageous, buyers should choose carefully due to differing conditions including land rent, additional equity purchase costs, and long-term resale restrictions." The expert added: "Supply must increase long-term for these housing models to be effective."
