LH to purchase 43,400 private housing units nationwide

Panoramic view of National Rental Housing in Gangnam 3 Complex, Gangnam-gu, Seoul|LH

Korea Land and Housing Corporation (LH) announced on the 5th that it had implemented the ‘Private New Construction Purchase Agreement Method Purchase Prior Notice for 2022’ on December 31, last year.

The private construction housing purchase agreement method is a project in which LH first signs a purchase agreement with private contractors for planned or under construction housing prior to construction completion, and purchases them after completion to use them as purchased rental housing. Unlike the existing method of purchasing a completed house, by signing a purchase agreement before the completion of the construction, LH can check the main construction process and expect to improve the overall housing quality. In addition, private businesses have the advantage of being able to remove the risk of unsold or unsold properties in advance, and reduce the burden of financing with the contract paid by LH.

A total of 43,400 households nationwide are eligible for purchase agreements this year. In detail, 7,500 households for public charter, 14,400 households for general housing, 10,000 households for newlyweds (multiple children), 14,500 households for youth, and 1,000 households for the elderly. In Seoul, Incheon and Gyeonggi alone, 62.2% (27,010 households) of the total will be purchased.

The target of purchase is multi-family, apartment, row house, urban living house, residential officetel, etc. with a residential area of ​​85 m2 or less for each household across the country.

In order to continuously secure housing, LH conducts housing purchases from time to time throughout the year until the necessary quantity is secured. In addition, various incentives have been prepared to increase the participation of private companies in purchase agreements. Private business operators with a record of purchase agreements can be given priority for public housing sites supplied by LH by lot, and can receive guarantee and loan products customized for purchase agreements through financial institutions. In addition, if the land is sold to a private business operator that has entered into a purchase agreement, capital gains tax reduction can be obtained.

Private new construction purchase agreement method purchase process|LH

Private new construction purchase agreement method purchase process|LH

However, to ensure fairness and transparency in the housing purchase process, LH employees and their families do not purchase houses. In addition, the purchase of housing for retired employees and their family members for which five years have not elapsed from the date of retirement is also restricted. Households brokered or sold by those who have been sanctioned by the LH for illegal acts such as solicitation are also restricted from purchasing for 10 years from the date the sanctions are finalized. An LH official said, “Collaborate with the private sector to secure high-quality housing as quickly as possible, and low rent burden. We will do our best to solve the rent shortage by supplying housing without any setbacks,” he said.


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