LH to Supply 43,000 Housing Units This Year Through Purchase Agreements

Pre-Announcement of This Year's Purchase Agreement Plan and Purchase Criteria
43,000 Housing Units to Be Purchased in 2022... Ongoing Applications Throughout the Year
Separate Notices for Specific Purchase Targets and Application Schedules by Region

A rental housing unit purchased under a contract method in Seocho-gu, Seoul.

Korea Land and Housing Corporation (LH) will supply a total of 43,000 housing units this year through the purchase agreement method.

On the 5th, LH announced the ‘2022 Preliminary Notice for Private New Construction Purchase Agreement Method’ which includes this year’s purchase agreement business plan and housing purchase standards.

The ‘Private Construction Housing Purchase Agreement Method’ is a project where LH signs a purchase agreement before construction completion for houses planned or under construction by private developers, then purchases them after completion to use as rental housing. Unlike the existing method of purchasing completed houses, LH signs the purchase agreement before construction is finished and inspects major construction processes.

After this announcement, LH plans to sequentially issue purchase agreement notices containing specific housing purchase standards, including houses excluded from purchase, by regional headquarters.

Purchases will be made nationwide, targeting multi-family houses, apartments, row houses, urban lifestyle housing, and residential officetels with a residential exclusive area of 85㎡ or less per household. After application submission, document screening and purchase review will be conducted to select eligible houses.

To ensure fairness and transparency in the housing purchase process, LH will not purchase houses owned by current employees or their families, and will restrict purchases of houses owned by retired employees and their families if five years have not passed since retirement. Additionally, houses sold (brokered) by individuals sanctioned by LH for improper acts such as solicitation will be restricted from purchase for 10 years from the date the sanction is finalized.

LH plans to continuously accept housing purchase applications throughout the year until the required quantity is secured to steadily acquire housing.

Various incentives have been prepared to encourage private developers’ participation in purchase agreements. Customized guarantees and loan products tailored to purchase agreements are available through financial institutions, and private developers with purchase agreement records will be given priority for public land supply through LH’s lottery. Also, private developers who sell land after signing purchase agreements can receive capital gains tax reductions.

An LH official stated, "We will cooperate with the private sector to quickly secure high-quality housing to the maximum extent possible and supply jeonse-type housing with low rent burdens without delay to do our best to resolve the monthly rent and jeonse housing shortage."

2022 Purchase Target Areas and Volumes

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