66,000 Officetel and Villa Rental Units to Be Supplied in Regulated Areas of the Seoul Metropolitan Region [Real Estate AtoZ]

Deputy Prime Minister Yoo: "Faster Supply than Apartments"

The government has decided to increase the supply of non-apartment purchase-based rental housing in regulated areas such as Seoul by 66,000 units by next year. This is nearly twice the amount supplied to regulated areas over the past two years. As both apartment sales and jeonse prices in Seoul have surged, the plan is to quickly expand the supply of non-apartment housing types such as officetels and villas, which can be provided relatively faster, to address the urgent situation.

One-room-tel dense area in Noryangjin, Dongjak-gu, Seoul. Photo by Jinhyung Kang aymsdream@

According to the non-apartment purchase-based rental plan announced by the Ministry of Land, Infrastructure and Transport on May 22, from 2026 to 2027, a total of 90,000 purchase-based rental housing units will be supplied in the Seoul metropolitan area, with 66,000 of these units allocated specifically to regulated areas such as Seoul. This figure for regulated areas is about double the 36,000 units supplied over the past two years. The supply of newly built purchased units will also increase significantly, from 34,000 to 54,000 units. The regulated areas include all 25 districts of Seoul and 12 locations in Gyeonggi Province: Gwacheon, Gwangmyeong, Seongnam (Bundang, Sujeong, Jungwon Districts), Suwon (Yeongtong, Jangan, Paldal Districts), Anyang (Dongan District), Yongin (Suji District), Uiwang, and Hanam.

The government will also adjust its purchasing methods to accelerate the pace of supply. Previously, only ‘block-based purchase’—where an entire building was acquired at once—was allowed, but moving forward, it will be possible to partially purchase certain floors or units. The government will also relax the building age requirements that were previously applied to purchase-based rental housing, thereby expanding the pool of eligible properties.

The Ministry of Land, Infrastructure and Transport has decided to increase non-apartment supply due to the recent sharp rise in both sales and monthly/jeonse rental prices. According to the Korea Real Estate Board, over the past week, apartment sales prices in Seoul rose by 0.31%, while jeonse prices increased by 0.29%. Both figures have shown an increasing rate for three consecutive weeks. The Ministry stated, “Until the supply of non-apartment housing normalizes, we will continue to expand purchases in regulated areas, even if we exceed the original target amount.”

Koo Yun-chul, Deputy Prime Minister and Minister of Economy and Finance, is speaking at the Emergency Economic Headquarters meeting, Economic Ministers and National Startup Era Strategy meeting, and Real Estate Related Ministers meeting held on the 22nd at the Government Complex Seoul in Jongno-gu, Seoul. Photo by Yonhap News Agency

Koo Yun-chul, Deputy Prime Minister and Minister of Economy and Finance, said at the Emergency Economic Headquarters meeting, Economic Ministers and National Startup Era Strategy meeting, and Real Estate Related Ministers meeting held at the Government Complex Seoul in Sejongno, Seoul, “Non-apartment housing types such as officetels can be supplied relatively quickly, so we can expect a visible expansion of supply within one to two years. Through this, we aim to ease the housing difficulties faced by young people.” He added, “To ensure the public sector leads the way in promoting non-apartment supply, we will expand the purchase-based rental supply of non-apartment housing, focusing on regulated areas.”

The government also announced it would strengthen its crackdown on illegal real estate activities. Deputy Prime Minister Koo said, “We have launched tax investigations into 127 individuals suspected of real estate tax evasion, and are also verifying the private use status of more than 2,630 high-priced residential properties—each worth over 900 million won—owned by corporations.”

This content was produced with the assistance of AI translation services.