Publicly Supported Private Rental Housing Contest Expanded to 20,000 Units Annually

Expansion of Fund Loan Limits and Realignment of Construction Cost Increase Standards

The Ministry of Land, Infrastructure and Transport and the Korea Housing & Urban Guarantee Corporation announced on the 12th that the '2023 Publicly Supported Private Rental Housing Private Proposal Project' will be expanded from 10,000 units per year to 20,000 units.

Accordingly, the second round of the second half public offering, starting on the 13th, is expected to be expanded from the originally planned 5,000 units to 15,000 units. In the first round of the first half public offering held earlier, 5,000 units were processed.

The Publicly Supported Private Rental Housing Private Proposal Project is a method in which a real estate investment trust (REIT), established with joint investment from the Housing and Urban Fund and the private sector on privately proposed project sites, purchases or constructs rental housing to promote the project.

This project is promoted by a real estate investment trust (REIT), established with joint investment from the Housing and Urban Fund and the private sector on privately proposed project sites, which purchases or constructs rental housing.

To facilitate the smooth supply of publicly supported private rental housing, the Ministry of Land, Infrastructure and Transport will temporarily increase the Housing and Urban Fund loan limit by 20 million KRW per unit and improve project conditions by rationalizing the construction cost increase criteria (100% of the amount exceeding 3% annually).

Additionally, the period from the public offering to the selection of the preferred negotiation candidate will be shortened from 3 months to 2 months, with plans to select the preferred negotiation candidate by the end of this year.

Kim Gyu-cheol, Director of Housing Welfare Policy at the Ministry of Land, Infrastructure and Transport, said, “We expect that through the expansion of the private proposal project public offering and the increase in fund loans, the supply of high-quality private rental housing will be timely.”

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