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Urban Planning News

  • Introducing First ‘Empty Private Houses for Rent’ at 90% Market Price

  • Urban Planning News SMG 3606

    Starting in February, the Seoul Metropolitan Government (SMG) is scheduled to provide 80,000 Empty Private Houses for Rent, a new type of rental house, by 2018.

    Through the Empty Private Houses for Rent program, the SMG will be providing lessors and lessees a maximum of KRW 250,000 each and up to KRW 500,000 in total for real estate brokerage fees while lowering the rental fees of private houses, as lessors are having a hard time finding tenants, to 90% of the market price. Promotional activities will be also supported via real estate portal sites.

    This housing program aims to solve the problems faced by landlords in securing tenants as well as to enable tenants to buy houses at lower than market value. This year, the SMG will provide 3,000 houses and increase this figure to 11,000 houses by 2018.

    The roles of the institutions concerned are as follows: Seoul City supports real estate brokerage; autonomous districts receive applications from the lessors of empty private houses and conduct verification of the first-round market price; the Korea Appraisal Board conducts verification of the second-round market price; and real estate portal sites promote houses, which are entitled to receive real estate brokerage support from Seoul City, via the Internet.

    Lessors with houses for exclusive use that offer a floor area of 85㎡, and are priced at under KRW 250 million, can apply. Every type of rental fee will be set at less than 90% of the market value. In terms of monthly rentals that require a partial deposit, both the deposit and monthly rental fee will be set at under 90%.