Despite Record Supply of Mirinae House... Jeonse Deposit Barrier Still Exceeds 1 Billion Won

Number of Applicants Falls Despite Record Supply

Over 67% of Units Exceed Asset Limit for Childless Households

The 'Long-Term Jeonse Housing 2 (Mirinae House)' policy, a Seoul city residential support program for newlyweds, was supplied at a record scale, yet the number of applicants for the lottery has actually declined. The sharp increase in jeonse deposits—especially after a large number of prime-location homes in the Gangnam area were included—has created a financing barrier that is difficult for newlyweds to overcome.

Seoul Mayor Oh Se-hoon visited Mirinae House at Jamsil Re'el, Sincheon-dong, Songpa-gu, Seoul, on the 1st to inspect the residential facilities. 2026.9.1 Photo by Hyunmin Kim

According to the Seoul Housing and Communities Corporation (SH) on September 12, a total of 22,883 applicants competed for 496 units in the '8th Mirinae House' lottery, which closed on the 9th. This was the largest offering of Mirinae House units to date, but the number of applicants was lower than the 27,874 in the 6th round and the 22,924 in the 7th round. The average competition ratio was also somewhat lower, at 46.13 to 1, compared to 69 to 1 in the 6th round and 51 to 1 in the 7th round.

The decline in applicants is attributed to the higher deposit hurdle. An analysis by The Asia Business Daily of the jeonse deposits for the 496 Mirinae House units supplied in this round found that 333 units (67.1% of the total) exceeded KRW 662 million, the total asset cap for childless households eligible to move in. Notably, 89 units, or 17.9% of the total, had jeonse deposits exceeding KRW 1 billion. The highest jeonse deposit was for an 84-square-meter Banpo Xi unit in Seocho-gu, which was re-supplied and had a deposit of KRW 1,263.6 million.

Under Mirinae House eligibility rules, the total asset cap for childless households is limited to KRW 662 million, regardless of home price or location. Total assets include not only real estate but also savings, deposits, stocks, pensions, and insurance. Even if a household at the asset cap were to liquidate all available cash, moving into the Cheongdam Reel in Gangnam-gu, which requires a deposit of KRW 1,170 million, would require an additional KRW 508 million in separate funding. To reduce the initial burden, tenants may pay 70% of the deposit upon move-in and defer the remaining 30%, but in the current high-interest environment, bearing the cost of additional loans and interest totaling hundreds of millions of won remains a substantial burden for newlyweds.

The Seoul Metropolitan Government also acknowledged difficulty in finding a solution. Early this month, Seoul Mayor Oh Se-hoon visited Cheongdam Reel and said, "Because a certain quota in redevelopment and reconstruction complexes must be secured for rental housing and supplied through Mirinae House, we inevitably face this drawback," adding, "We recognize that there are price levels that are difficult for young people and newlyweds to afford, and we are studying ways to address this."

Experts recommend shifting responsibility for the high-priced rental market to the private sector. Seo Jinhyung, professor of real estate and law at Kwangwoon University, stated, "The government should focus on acquiring public land and supplying large-scale permanent rental housing with significantly increased floor area ratios—up to 1,000% in the city center. The public sector should focus on housing welfare, while the high-priced rental market should be handled by the private sector, implementing a two-track strategy."

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