Incheon Geomdan, Hwaseong Neungdong, Uiwang Chopyeong 'Nuguna Jip' Project Operators Recruitment... 6,075 Units Supply

The Ministry of Land, Infrastructure and Transport, Korea Land and Housing Corporation (LH), and Incheon Urban Corporation announced on the 6th that they will hold a public contest for project operators starting from the 8th to supply the 'Publicly Supported Private Rental Housing with Confirmed Sale Price Conversion (hereinafter referred to as Nugunajib)' in six project sites including Hwaseong Neungdong, Uiwang Chopyeong, and Incheon Geomdan.

The Nugunajib project is a publicly supported private rental housing that promises priority sale to non-homeowners at a pre-determined price. Tenants can live for 10 years at an affordable rent and purchase the housing at the pre-determined sale conversion price after the rental period ends. Unlike 10-year public rental housing, the capital gains upon sale conversion are shared between the project operator and the tenant.

Earlier, the Democratic Party's Special Committee on Real Estate announced in June a plan to supply about 10,000 Nugunajib units, allowing long-term residence by paying only 6-16% of the house price, in six metropolitan areas including Incheon Geomdan, Ansan Banwol·Siwha, Hwaseong Neungdong, Uiwang Chopyeong, Paju Unjeong, and Siheung Siwha.

For Hwaseong Neungdong, where operators are being recruited this time, a total of 899 apartment units with exclusive areas of 60 to 85 square meters or less will be supplied on a 47,747㎡ site. This area is close to Seodongtan Station on Subway Line 1 and will be connected to the Indeokwon-Dongtan double-track railway, providing good transportation. It is also easily accessible to Seoul via SRT Dongtan Station, Gyeongbu Expressway, and the Metropolitan Area 2nd Ring Expressway (Buk Osan I.C.). Adjacent to the west side of Dongtan 1 New Town, it offers convenient access to living and cultural facilities.

Uiwang Chopyeong will supply 951 apartment units with exclusive areas of 60㎡ or less and 60 to 85㎡ on a 45,695㎡ site. Uiwang Station on Subway Line 1 is located about 1 km east of the district, facilitating movement within the metropolitan area. Nearby are the Suwon-Gwangmyeong Expressway, Yeongdong Expressway, National Route 42, and National Route 47. Walking access to Gunpo Central High School, Bugok Central Middle School, and Bugok Central Elementary School is possible, and industrial complexes such as Uiwang Technopark and Gunpo Advanced Industrial Complex, as well as companies like Hyundai Rotem, are located here.

In Incheon Geomdan, a total of 4,225 apartment units with exclusive areas of 60㎡ or less and 60 to 85㎡ will be supplied across four blocks on a 219,526㎡ site. The area is bordered by the Metropolitan Area 1st Ring Expressway, Incheon Airport Expressway, Olympic-daero, and Gangbyeonbuk-ro. It offers good access to Seoul via the Airport Railroad. The extension of Incheon Urban Railway Line 1 is also scheduled to open by the end of 2024.

Profit-sharing structure from price difference due to sale conversion of 'Nuguyajip' housing (Data provided by the Ministry of Land, Infrastructure and Transport)

The Ministry of Land, Infrastructure and Transport also revealed more specific details about the Nugunajib project. First, project operators must propose a confirmed sale price within the upper limit set by the public contest institution. The upper limit of the sale conversion price is the appraised price at the time of the contest, adjusted by applying an annual average housing price increase rate of 1.5% from the project start date to the sale date.

This is intended to provide tenants with the opportunity to own a home at a price lower than the market price and to prevent conflicts over the post-sale price calculation method. Private operators are also expected to secure an internal rate of return of 5% or more by applying the 1.5% annual average housing price increase rate.

Additionally, if capital gains exceeding the confirmed sale price occur later, these gains will be shared between the tenant purchasing the house and the project operator. For tenants who do not purchase the house, since they have contributed to the increase in the housing value through their residence, project operators are required to propose a plan to share economic benefits according to the tenant's length of residence.

Detailed contest information will be announced on the LH and Incheon Urban Corporation websites starting from the 8th. Letters of intent to participate will be accepted from the 14th to the 15th. Only operators who submit letters of intent will be asked to submit project plans by November 8, and the preferred negotiation candidate will be selected through evaluation.

The selected preferred negotiation candidate will proceed with the project in earnest after consulting with the Housing and Urban Guarantee Corporation (HUG) on specific projects and going through procedures such as housing project plan approval, housing and urban fund investment approval, rental REIT business license, and project agreement signing.

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