Ministry of Land, Recruitment of Operators for Supplying 2,000 Public-Supported Private Rental Housing Units

Perspective view of the Pyeongtaek Godeok A-56 Block Publicly Supported Private Rental Housing Project by the Geukdong Construction Consortium, selected as the preferred negotiator in the 3rd Publicly Supported Private Rental Housing Private Developer Competition in 2020 (Provided by Korea Land and Housing Corporation)

[Asia Economy Reporter Chunhee Lee] The final public-private proposal project for the supply of 2,000 public-supported private rental housing units this year is underway.

The Ministry of Land, Infrastructure and Transport and the Housing and Urban Guarantee Corporation (HUG) announced on the 8th that they are conducting the "2020 4th Public-Supported Private Rental Housing Private Proposal Project Contest."

Public-supported private rental housing offers rental rates up to 85% lower than surrounding market prices, providing safe housing for more than 10 years.

This private proposal project involves a real estate investment trust (REITs) established jointly by the Housing and Urban Fund and private entities investing in business sites proposed by the private sector to purchase or construct public-supported private rental housing.

The contest was introduced to more effectively select excellent private rental business sites, targeting projects where housing construction can begin immediately without urban planning changes or projects currently under construction.

Selected projects through the contest will receive support such as fund investment, loans, and rental REITs housing project finance guarantees after HUG’s fund investment review.

HUG previously completed the selection of businesses through three contests starting with the first contest in March. Including this contest, they plan to promote about 8,000 units of private proposal-type contest projects this year.

Detailed information about this contest will be available on the HUG website from the 10th. Subsequently, letters of intent will be accepted from the 24th to the 31st. Only businesses that submit letters of intent will be able to submit project applications by February 19 next year, and the preferred negotiation candidates will be selected in March.

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