S. Korean gov't to supply 114,000 new houses nationwide for 'jeonse' rent including hotel renovations
- 3 years ago
전세난 잡으려 '호텔방 전세 포함' 임대주택 11만 4천 호 공급한다
South Korea is converting hotels and offices into residential studios that can be rented out... its latest attempt to address the nationwide outcry over soaring rent prices.
The government unveiled its plans today to add 114-thousand homes for public housing on lease within the next two years by buying up empty hotels and offices and turning them up targeting an increasing number of single, young renters struggling to find affordable homes.
Eum Ji-young has the details.
The South Korean government plans to supply 114-thousand rental homes nationwide over the next two years in a bid to reduce the soaring cost of "jeonse", a rental agreement that uses a huge lump-sum deposit instead of monthly rent.
Finance Minister Hong Nam-ki announced at a ministerial meeting on the property market on Thursday that 70-thousand of those homes would be in the capital and surrounding areas, including 35-thousand in Seoul.
"They will be provided in part by buying newly built houses and leasing them out, and by building or leasing public homes."
The government plans to provide 49-thousand homes, or about 40 percent of the total, by June next year.
It also plans to turn vacant shopping malls, offices and lodging facilities into residential spaces to create an extra 13-thousand units for rent by 2022, including five-thousand-four-hundred in Seoul.
"With low rental fees, hotels will be transformed into high quality housing for single-person households and young people."
However, an expert says this will not be enough to solve the shortage of homes available for Jeonse renting.
"Renovating hotel rooms for residential purposes won't be enough for two-to-four person households. Last year, Benikea hotel in the Jongno-gu district was provided for young people to rent, but a lot of the units there are still vacant."
Meanwhile, the national average house price went up by point-25 percent in the third week of November. That's the largest weekly increase since records began eight-and-a-half years ago.
Experts say house prices have increased due to the soaring Jeonse costs which have led more people to buy low and medium-priced homes.
Eum Ji-young, Arirang News.
South Korea is converting hotels and offices into residential studios that can be rented out... its latest attempt to address the nationwide outcry over soaring rent prices.
The government unveiled its plans today to add 114-thousand homes for public housing on lease within the next two years by buying up empty hotels and offices and turning them up targeting an increasing number of single, young renters struggling to find affordable homes.
Eum Ji-young has the details.
The South Korean government plans to supply 114-thousand rental homes nationwide over the next two years in a bid to reduce the soaring cost of "jeonse", a rental agreement that uses a huge lump-sum deposit instead of monthly rent.
Finance Minister Hong Nam-ki announced at a ministerial meeting on the property market on Thursday that 70-thousand of those homes would be in the capital and surrounding areas, including 35-thousand in Seoul.
"They will be provided in part by buying newly built houses and leasing them out, and by building or leasing public homes."
The government plans to provide 49-thousand homes, or about 40 percent of the total, by June next year.
It also plans to turn vacant shopping malls, offices and lodging facilities into residential spaces to create an extra 13-thousand units for rent by 2022, including five-thousand-four-hundred in Seoul.
"With low rental fees, hotels will be transformed into high quality housing for single-person households and young people."
However, an expert says this will not be enough to solve the shortage of homes available for Jeonse renting.
"Renovating hotel rooms for residential purposes won't be enough for two-to-four person households. Last year, Benikea hotel in the Jongno-gu district was provided for young people to rent, but a lot of the units there are still vacant."
Meanwhile, the national average house price went up by point-25 percent in the third week of November. That's the largest weekly increase since records began eight-and-a-half years ago.
Experts say house prices have increased due to the soaring Jeonse costs which have led more people to buy low and medium-priced homes.
Eum Ji-young, Arirang News.