Seoul rental project draws 5,227 applicants for 40 units at 130.7-to-1 ratio

Seongdong Space, a publicly supported private rental housing development in Majang-dong, Seoul’s Seongdong-gu, received 5,227 applications for 40 units during subscriptions held from the 12th to the 14th, producing an average competition ratio of 130.7 to 1 and a peak of 243 to 1 by unit type. It was Seoul’s first subscription for publicly supported private rental housing in roughly a year, since September last year. The project offers rents at 70% to 80% of nearby market rates, annual increases capped at 5% and tenancy of up to 10 years. Its lottery-based general supply required no housing subscription savings account and imposed no income or asset requirements, helping drive demand amid scarce rental listings and rising rents. The government’s Aug. 13 Rapid Housing Supply Plan also calls for corporate-style private rentals lasting 20 years or more, supported by Korea Housing and Urban Guarantee Corporation guarantees for low-interest financing. Initial rents and rents when tenants change would be set at about 95% of market rates under the proposed long-term model.

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