Gyeonggi Housing and Urban公 to Offer 'Long-term Jeonse and Monthly Rent Housing' for Residents Living Over 30 Years

Heonwook Lee, President of GH Corporation, is holding a press conference about the Basic Housing at the Gyeonggi Provincial Government briefing room on the 21st.

[Asia Economy (Suwon) = Reporter Lee Young-gyu] Gyeonggi Province announced that it will supply a standard model of 'Basic Housing' in the 3rd New Town for anyone without a home to live in for more than 30 years. It also requested the government to improve the system so that private sale sites or public sale sites within public land can be repurposed and utilized to secure basic housing.

GH Gyeonggi Housing and Urban Corporation (formerly Gyeonggi Urban Corporation) announced the 'Basic Housing Plan for Housing Stability for the Homeless in Gyeonggi Province' on the 21st.

According to the plan, Basic Housing is a long-term rental housing that can be lived in for more than 30 years. It can be rented for 30 years and then rented again. It is not for sale. Basic Housing will be supplied in key locations such as areas near subway stations. Anyone without a home can move in.

It will be operated by public project operators who build, supply, and manage the housing, with rental housing complexes owned by a reserve REIT. To calculate affordable appropriate rent, a rent (RIR 20%) that does not exceed 20% of the median income per household will be applied. GH Corporation will supply the standard model of Basic Housing on a large scale in the 3rd New Town.

Lee Heon-wook, president of GH Corporation, explained, "We plan to supply at least 50% of the housing supply volume in key locations of the 3rd New Town, where GH Corporation participates and promotes, as Basic Housing."

GH Corporation introduced the concept of Basic Housing into future housing supply policies because it judged that expanding sale housing has limitations in solving housing stability.

Furthermore, even with the application of the sale price ceiling system, the price of sale housing supplied in key metropolitan areas is too high, and even if sale housing is preferentially supplied to the homeless, the increase in homeownership rate is minimal, which also influenced the introduction of Basic Housing.

President Lee said, "There are difficulties in mass supply of public construction rental housing due to funding and debt," adding, "The current public rental business is already showing limitations in cross-subsidization through profit businesses, with worsening cash flow due to long-term holding of rental housing and continuous increase in debt."

In fact, according to the 2018 Statistics Korea housing ownership statistics, among the 44% of homeless people in Gyeonggi Province, 8% benefited from the government, and the remaining 36% lived in rental households.

Accordingly, GH Corporation holds the position that system improvement is necessary to allow repurposing and utilization of private sale sites or public sale sites within public land to secure more Basic Housing and ensure continuous project promotion by public project operators.

Earlier in February, GH Corporation introduced the first middle-class rental housing model nationwide.

President Lee promised, "Through Gyeonggi Province's core policy, the 'Public Development Profit Return System to Residents,' development profits will be continuously returned to residents," and added, "We will continue to promote public rental housing for low-income groups."

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