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Providing public rental housing to multiple families and hotels as “forever”
Lease agreement purchased and jeonse lease agreement with little effect on the offer
Only suburban villas and charters are affected, not apartments and Gangnam
Concerns about increased class conflict in the mass production of “Lotto” rental housing
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The Ministry of Land, Infrastructure and Transport has developed measures to provide 114,000 public housing units for rent by 2022 in order to solve the “ jeonse crisis ”. However, on the market, such measures should not be effective. In particular, “buy / lease”, which is the main pillar of the bidding plan, is a way of procuring homes that have already been provided or planned to be provided by the public. While the total number of homes remains unchanged, only the label is changed from “private” to “public”. Furthermore, it is argued that these public rental houses do not help solve the charter crisis, they create a “lot charter” and only distort the low cost rental market.
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◇ Even though all types of houses were “young”, the effect of the increase in supply was “good”= According to the government’s “Residential Stability Support Plan for the Middle and Lower Class”, it is expected to provide 114,100 households for public rent using multi-family and vacant stores over the next two years. Looking at their supply plan, a lot of them should be bought or rented. Purchased lease is a method in which a public company or local government such as Korea Land and Housing Corporation (LH) and Seoul Housing and Urban Corporation (SH) buys and re-leases a home that has already been built or which is scheduled to be built. It is the same as the quantity supplied or will otherwise be supplied. Leased rental is also a way to provide a more stable residential environment by intervening the public in existing private rental homes.
Ultimately, privately planned housing is provided only by public purchases or jeonse. The industry’s dominant view is that it has the advantage of providing housing at a lower than market price to vulnerable people, who have difficulty paying rent, but there is virtually no effect of providing housing.
The types of accommodation are also controversial. It will be supplied mainly to multi-family and multi-family houses, not to the “apartments” most consumers want. They are also looking negatively on how to use hotels and malls. One netizen said: “I think just living in a public rented house converted from a hotel will be treated like a beggar.” “The house consumers really want is an apartment.”
Criticism of finance is also raised amid doubts about the effectiveness of the government’s measures to stabilize the jeonse crisis. It was confirmed that a budget of around 6.5 trillion won was needed to secure public rental housing announced by the government in the 19/11 pre-generation plan. The government plans to raise financial resources by organizing an additional 3 trillion. won and 200 to 300 billion won each for the Housing City Fund next year and next year.
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◇ Another batch after subscription? The conflict between generations is amplified, but there is also concern about the distortion of the rent and the market near the area of public rental offer. Most of the public rental housing is expected to be provided primarily in the Gangbuk area, particularly in the multi-family and multi-family cluster areas, rather than in the Gangnam area, where land prices are high. In the end, there are fears that it will only hit the low-cost rental market without affecting the Gangnam area and the apartment and monthly rental market.
There are also concerns that “lot” rental housing, provided at too low a market price, may amplify social conflicts. This is because the benefits can be concentrated in specific groups, as the housing supply is not sufficient to meet all housing rental needs. When “eight” rents are provided intensively to certain groups or classes, such as happy homes provided to newlyweds, marginalized groups and classes can rebel and increase social conflict.
Such a situation is already manifesting itself in the subscription market. The subscription conflicts are intensifying as the presale price is set at a price of hundreds of millions of won or more than 1 billion won over the market price due to various government regulations. The first special offer in life, which the government has introduced into private sales to appease the low-end 30s, is causing the anger of the 4050s this time around.
Lee Eun-hyung, senior researcher at the Korea Institute for Construction Policy, said: “The quantity is bound to be limited, but if you set a lower rent than the new rental property nearby, you can distort the market price. . There are side effects. “Also,” the purchase of a rent does not translate into the creation of new homes, so in the end the total amount of housing on the market is the same and the effect of the increase in the amount of rent is insignificant. ” . / Reporter Kwon Hyuk-jun [email protected]
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