(C) Wise

The dream of living in a serene, traditional Korean house (Hanok) in the heart of Seoul has ignited a fierce competition among newlyweds. Seoul’s public Hanoks, offered as long-term rentals, have proven the immense potential of Hanok living by recording historic application rates.

On January 22, the Seoul Metropolitan Government announced that the first recruitment for the ‘Mirinae House’ public Hanoks—a program linked with long-term rental housing for newlyweds—drew 2,093 applicants for just 7 available units, resulting in an average competition rate of 299 to 1. As part of the city’s initiatives to tackle low birth rates, this program provides Hanoks to (prospective) newlyweds and households with newborns at 60% to 70% of the market rental price.

The most sought-after unit was located in Bomun-dong 6-ga, Seongbuk-gu, which shattered records with a competition rate of 956 to 1. This particular house features three rooms and two bathrooms, and its proximity to Bomun Station (Line 6 and Ui-Sinseol Line) made it highly desirable. The flexibility of the rental structure was also a major draw; by adjusting the deposit, tenants could lower their monthly rent to as little as 260,000 KRW, a significant relief for young couples facing high housing costs.

Other units also saw high demand, including a house in Wonseo-dong with a view of Changdeokgung Palace and a property in Gaho-dong featuring a spacious courtyard. Applicants were largely attracted by the "work-life proximity," as these homes are located near the Central Business District (CBD), combined with the unique aesthetic appeal of traditional architecture.

Beyond the immediate housing benefits, the program offers a strategic long-term incentive. If a tenant gives birth while residing in the Hanok, they are granted priority rights to move into an apartment-style long-term rental house after their 10-year contract expires. This effectively addresses concerns about raising children in traditional houses by guaranteeing a transition to modern apartments later on.

Encouraged by this success, Seoul plans to accelerate its supply. Seven more public Hanoks whose current contracts expire this year will be converted into 'Mirinae Houses.' Starting next year, the city aims to formally expand the supply of residential Hanoks in conjunction with new Hanok village development projects.

"Traditional Hanoks, when integrated with modern rental systems, are emerging as a trendy residential alternative for the MZ generation," a real estate expert noted. "Given the limited supply, the scarcity value of Hanok living is expected to rise further." The final winners of the first round will be announced on April 2, with move-ins scheduled to begin on April 27.

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