EMPTY STATE-RUN RENTAL APARTMENTS

[Anchor Lead]

Many people are taking an interest in rental apartments provided by the state-run Korea Land and Housing Corporation, as they are cheaper than the market value. But nearly half of the public rental houses in Yangsan, Gyeongsangnam-do Province, remain empty and people cannot move into them. Let’s take a look at the reason.

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Residents began moving into these rental apartments in Yangsan, Gyeongsangnam-do Province, in February, 2020, which were built under the happiness housing project. They are public rental apartments Korea Land and Housing Corporation provides to young people, newly weds and single parent families at prices 60 to 80 percent of market value. However, nearly half of the 900 apartments remain unoccupied.

[Soundbite] (Apartment resident(VOICE MODIFIED)) : "It is not easy to move in here. It is different from ordinary private apartments. As we all know, LH is a state-run company and strictly follows rules for qualifications."

It has been found that the state-run housing company has not received applications from potential tenants for one and a half years.

[Soundbite] Choo Ji-sook(Rental Apartment applicant) : "I kept checking ads and called the management office, which put me through to another office. Despite my efforts, I was told there would be no vacancies in the near future. I was disappointed."

There's more of the company's public rental apartments built across the street. They are so popular that pre-selected new tenants on a waiting list can move in only when current tenants move out. Despite this imbalance, LH said that due to heavy workload, it had no time to issue notices of collecting tenants for the happiness apartments. It added they are smaller and less popular than other types of public rental houses.

[Soundbite] (LH Gyeongnam office official(VOICE MODIFIED)) : "It is hard for us to place rental ads for all apartments. The contract rate is lower than in other regions."

LH means that it's not necessary to issue ads to invite new tenants every two or three months like with other public rental apartments because demand is much smaller.

[Soundbite] Jeong Jin-wook(Rental Apartment resident) : "It is necessary to promote the empty apartments and ease rules on tenant qualifications. Qualifications are being eased for other types of LH rental apartment and they are fully occupied with a long wait list."

Eight percent of happiness apartments across the nation remain empty. In Yangsan, the rate is five times higher than the nationwide average. This points to the need to find the exact cause of the low demand and devise ways to increase the occupancy rate.