SH Corporation's 130,000 Public Housing Units Valued at 76 Trillion Won... Three Times Their Acquisition Cost

[Asia Economy Reporter Ryu Tae-min] The market value of the total 131,160 public housing units owned by Seoul Housing and Communities Corporation (SH Corporation) has been revealed to exceed 76 trillion won. This is 3.4 times higher compared to the acquisition cost (21.9625 trillion won).

On the 15th, SH Corporation detailed the asset information including acquisition cost, book value, and publicly announced price by district and year for the 131,160 public housing units it owns on its official website. As the first public enterprise to fully disclose asset details, following the first phase in March where 28,000 long-term lease housing units were disclosed, the second phase revealed about 102,000 apartment units, and the third phase announced asset details of about 22,000 purchased rental housing units. This time, the fourth phase disclosed asset details of public housing (apartment type).

In this fourth disclosure, a total of 131,160 housing units and buildings owned by the corporation are updated and disclosed based on the property tax as of June last year. The SH Corporation assets disclosed this time include ▲ apartment-type rental housing ▲ multi-family/multi-unit housing ▲ urban lifestyle housing ▲ and purchased rental housing for young newlywed couples.

According to the disclosed details, the total acquisition cost of all public housing owned by SH Corporation as of the end of December 2021 was 10.0615 trillion won for land and 11.901 trillion won for buildings, totaling 21.9625 trillion won. The average acquisition cost per household was 167.44 million won. The total market value was estimated at 76.3847 trillion won (average 580 million won per household), which is 3.4 times the acquisition cost.

The book value was 18.4798 trillion won (average 140.89 million won per household), about one-quarter of the market value. The publicly announced price (as of June 1 last year) was 45.6979 trillion won (average 350 million won per household), approximately 60% of the market value.

Notably, apartment-type public housing (monthly rent and jeonse lease types) accounted for 105,536 units, representing 91.9% of the total. The acquisition cost was 16.231 trillion won (average 153.79 million won per household), and the market value was 70.2377 trillion won (average 670 million won per household). The publicly announced price was 41.3012 trillion won. Among these, public rental apartments in 34 complexes built between 1989 and 2005, which have reached the standard useful life of 30 years, had an acquisition cost of about 2.0362 trillion won, a book value of 1.2419 trillion won, and a publicly announced price of 8.1184 trillion won.

Among the 34 aged rental complexes, the Hagye 5 complex, which is undergoing redevelopment, had an acquisition cost of 14.6 billion won, a book value of 6.3 billion won, and a publicly announced land value of 160.8 billion won. The Sangye Madle complex recorded an acquisition cost of 13.8 billion won, a book value of 9.4 billion won, and a publicly announced land value of 22.2 billion won.

SH Corporation owns a total of 25,624 purchased rental housing units. These consist of 15,397 multi-family/multi-unit units, 6,745 urban lifestyle housing units, and 3,482 purchased rental units for young newlywed couples. The market value is 6.147 trillion won, which is 415.5 billion won higher than the acquisition cost (5.7315 trillion won). The book value is 5.3206 trillion won, and the publicly announced price is 4.3967 trillion won. The purchased rental housing prices were calculated by reverse calculation based on the Ministry of Land, Infrastructure and Transport’s announced joint housing publicly announced price realization rate of 71.5% last year.

Kim Heon-dong, President of Seoul Housing and Communities Corporation, said, “We will transparently disclose all information so that the ‘10 million Seoul citizens,’ who are the owners and shareholders of our corporation, can check SH Corporation’s asset status at any time.” He added, “We will continue to disclose public data to satisfy citizens’ right to know and to enhance the transparency and reliability of the corporation’s management.”

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