This study aims to propose a policy for improving the quality and expanding supply of public housing for sale by finding problems and improvements in public housing for sale by studying the demand characteristics and selection factors on the part of public housing for sale buyers. The results of the empirical analysis are as follows: First, the perception of public housing for sale was positive and the reason was because of its low selling price. As for the perception of brand image of public housing for sale, brands of private construction companies are preferred the most because of their higher value investment. As for the preferred housing area for public housing for sale, it was found that medium-sized housing was more preferred than small-sized housing. The selection factors of public housing for sale were convenience of transportation, high investment value, convenience of parking space, and excellent educational environment. Second, in case of the residential satisfaction, it turned out that residents feel generally satisfied with residence at above-average points. The reasons for satisfaction were in the order of ‘environmental friendliness,’ ‘high brand recognition,’ and ‘high investment value.’ On the other hand, the reasons for dissatisfaction were in order of ‘convenience of parking space,’ ‘convenience of traffic,’ and ‘excellent educational environment.’ The factors to be considered to improve the residential satisfaction were shown in order of ‘convenience of transportation,’ ‘excellent educational environment,’ and ‘convenience of amenities.’ Third, survey participants agreed on the necessity of expanding the supply of public housing for sale on some levels at above-average points. The items to be considered when supplying public housing for sale were ‘convenience of transportation,’ ‘excellent educational environment,’ and ‘convenience of using convenience facilities’ in their order. This is the same as the ones to be considered to improve residential satisfaction. In addition, the most common area of housing that needs to be expanded is 'more than 74㎡ to 85㎡,‘ the same as the preferred area of housing.