Daewoo Construction Consortium Selected as Preferred Negotiator for Seongnam Bokjeong1 Publicly Supported Private Rental Housing

LH Selects Priority Negotiation Candidates for 1st Publicly Supported Private Rental Housing in 2024
Seongnam Bokjeong 1 Daewoo Construction Consortium, Icheon Jungri Gyeryong Construction Industry Consortium
A total of 1,101 Publicly Supported Private Rental Housing Units to be Supplied Through This Project

[Asia Economy Reporter Kangwook Cho] The Daewoo Construction consortium has been selected as the preferred negotiation candidate for the Seongnam Bokjeong 1 District B2 Block public-supported private rental housing project. The Gyeryong Construction consortium was chosen as the preferred negotiator for the Icheon Jungri B4 Block.

According to the Korea Land and Housing Corporation (LH) on the 5th, these selections were made following the first round of public-supported private rental housing private business operator competition evaluations this year. The Yangju Hoecheon A23 Block was canceled due to the applicant not meeting the qualification requirements.

Aerial view of Seongnam Bokjeong 1 Complex.

The Daewoo Construction consortium for Seongnam Bokjeong 1 proposed a complex plan that harmonizes the existing urban area and nature through a Streaming Avenue where life and culture can be shared within the complex.

Notably, it features comprehensive resident services based on various communication channels such as the ‘Prugio Chatbot,’ and offers differentiated services unique to Daewoo Construction, including △strengthening residential stability through 12 years of rental operation △eight customized housing floor plans such as duplex houses with separate units, houses with front yards, and pocket garden houses △spaces enabling youth networks like shared offices and content production studios.

Aerial view of the Icheon Jung-ri complex.

The Gyeryong Construction Industry consortium, selected as the preferred negotiator for Icheon Jungri, proposed various shared space plans utilizing the central plaza within the complex connected to public pedestrian pathways.

Additionally, they suggested services aligned with post-COVID-19 trends, including △communication programs for prospective residents, △design of startup support spaces for youth, △indoor hobby activity support facilities, and contactless entry and exit systems.

Earlier, on March 24, LH announced a public competition for private business operators to implement the ‘Public-Supported Private Rental Housing Project’ targeting Seongnam Bokjeong 1 B2 Block, Icheon Jungri B4 Block, and Yangju Hoecheon A23 Block.

The ‘Public-Supported Private Rental Housing Project’ is a business where private rental operators acquire housing (through construction or purchase) with public support such as investment and loans from the Housing and Urban Fund and land supply from LH, and rent them out for more than 10 years.

These houses are supplied at low rents, 85-95% or less compared to surrounding market prices, with priority supply to the homeless and special supply of at least 20% to youth, newlyweds, and the elderly, enhancing the public nature of private rental housing.

Following the government’s ‘Housing Welfare Roadmap,’ LH has been supplying about 6,000 units of public-supported private rental housing annually since 2018 through a ‘land competition method,’ planning to supply a total of 44,000 units by 2025.

The selected preferred negotiation candidates will establish rental REITs after consulting with the Housing and Urban Guarantee Corporation on project plans, proceed with fund investment reviews, start housing construction, and recruit tenants.

LH announced that the Yangju Hoecheon A23 Block, which was canceled this time, will be re-competed in June.

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