LH to Acquire 8,000 'Hard-to-Sell' Unsold Homes, Raising Purchase Price to 90% of Appraised Value

Follow-up to "Measures to Strengthen Construction Investment Centered on Regional Areas"
Focused on Reducing Unsold Housing Inventory
Tax Benefits and Eased Purchase Ceiling
3,000 Units to Be Acquired This Year, 5,000 Next Year
Purchase Price Ceiling Raised from 83% to 90% of Appraised Value
Encouraging Construction Company Participation
Purchased Homes Supplied as "Convertible Lease to Sale"
Benefits Expected for Young People and Newlyweds
Only 24% of Target Achieved in First Announcement

The Ministry of Land, Infrastructure and Transport is significantly expanding the purchase of unsold homes after completion through Korea Land & Housing Corporation (LH) to address the downturn in the regional construction market. This move follows the recently announced "Measures to Strengthen Construction Investment Centered on Regional Areas."

On the 29th, the Ministry stated, "LH will conduct a second round of purchase announcements targeting unsold apartments after completion in all regions outside the Seoul metropolitan area." Notably, this purchase expands the volume from 3,000 units in the first announcement in March to 8,000 units. Specifically, the plan is to acquire 3,000 units this year and 5,000 units next year in sequence.

During the first round of purchases in March, a total of 3,536 units (58 applications) were submitted to LH. Of these, only 733 units (12 applications) passed the review, accounting for about 24% of the target. At that time, the purchase price ceiling was set at 83% of the appraised value, and many construction companies responded that the terms were not profitable. In response, the second round of announcements has raised the purchase price ceiling to 90% of the appraised value to encourage greater participation from construction companies. The purchase price will be determined in ascending order, reflecting the desired prices proposed by applicants within the ceiling.

The purchased homes will be supplied under the "Convertible Lease to Sale" program. Residents can choose to purchase the unit after living there for six years at a lease rate set at approximately 90% of the market price, with the option to extend the lease for two more years if they do not wish to purchase. Further details are available on LH Subscription Plus (https://apply.lh.or.kr) starting on the 29th.

Kim Gyucheol, Director General of Housing and Land at the Ministry, stated, "This measure will help secure liquidity for the construction industry and revitalize regional economies," adding, "We will select high-quality homes with sufficient rental demand to provide stable housing and homeownership opportunities for local young people and newlyweds without homes."

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