LH to Purchase Reserve Land Worth 100 Billion Won This Year

Acquisition of Land for National Policy Projects and Urban Housing Supply Expansion
Purchase Price Negotiated Within the Average of Two Appraisal Values
Applications Accepted Until the 17th of Next Month... Contract to Be Signed Early Next Year After Review

[Asia Economy Reporter Kangwook Cho] Korea Land and Housing Corporation (LH) announced on the 31st that it will purchase land to stockpile prime land that can be utilized for public projects such as expanding housing supply and urban regeneration.

Since 2015, LH has been purchasing and stockpiling land through a public offering method to timely promote national policy projects and housing supply within urban areas. The stockpiled land is being used for various projects such as public housing development when demand arises, like the construction of the 'Seoul Jung-gu Sanlim-dong Knowledge Industry Center.'

This year, the land to be purchased is valued at approximately 100 billion KRW, and LH plans to stockpile land that can be utilized in the mid to long term through a public offering method.

The purchase targets are one parcel or multiple adjacent parcels of land registered under an individual or corporation as of the application period (August 31 to September 17, 2021), with a land area of at least 1,000㎡ in urban areas and 1,500㎡ outside urban areas. The land must be suitable for public projects such as urban regeneration projects and housing construction projects.

Land that is difficult to develop due to acquisition, use, or disposal restrictions under relevant laws or forest land that is difficult to use for housing construction projects is excluded from the purchase targets.

The purchase price is determined through negotiation between LH and the seller within the amount calculated as the arithmetic average of the appraisal values evaluated by two appraisers selected by LH. If a sales contract is concluded, LH will bear the appraisal costs.

The land purchase procedure includes land investigation and appraisal, purchase and stockpiling review, and price negotiation after receiving the sales application. The land appraisal method quantitatively evaluates locational characteristics such as population and accessibility in the area, as well as physical characteristics such as zoning, land area and shape, and slope.

Those wishing to sell land can submit the sales application and necessary documents by visiting LH regional headquarters nationwide, sending by mail, or through the LH website during the three-week period until September 17. The forms for the required documents can be found on the LH website under Customer Support - News - Notices.

After the application reception, land investigation and evaluation of project applicability and locational conditions will be conducted from September to October, and the land to be purchased will be selected in November. Contract signing and payment are expected to be completed in the first half of next year.

For more details, please refer to the '2021 LH Mid- to Long-Term Project Utilization Land Purchase Announcement' posted on the LH website.

An LH official stated, "Through this land stockpiling purchase, LH expects to secure candidate sites for housing construction projects, and corporations and individuals can secure liquidity through land sales, creating a win-win effect."

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