Supply of 1,000 Themed 'Maeip Rental Housing' Units... Rent at 'Half the Market Price'

by Mun Jewon

Published 08 Sep.2021 11:00(KST)

Arts Stay in Yeongdeungpo-gu, Seoul, combining youth housing and art startups (Photo by Ministry of Land, Infrastructure and Transport)

The Ministry of Land, Infrastructure and Transport announced on the 8th that it will supply 1,000 units starting from the 13th as a pilot project of 'Theme-type Purchased Rental Housing' to provide customized housing services to residents.

Theme-type Purchased Rental Housing is a new form of public rental housing where private operators pre-select an operating theme, construct housing through a public purchase agreement method, and select residents that fit the theme to provide differentiated services.

Purchased rental housing, mainly supplied as row houses and multi-family houses, has the advantage of quick supply, but due to the nature of purchasing and renting already completed houses, it has been difficult to implement specialized designs or create community spaces tailored to diverse resident demands.

Accordingly, the Ministry of Land plans to complement the limitations of public purchased rental housing through theme-type purchased rental housing. First, private businesses freely select themes considering regional characteristics and business demand, and supply distinctive purchased rental housing reflecting those themes. Korea Land and Housing Corporation (LH) purchases houses planned and constructed by the private sector to secure unique rental housing.

In the case of theme-type purchased rental housing, up to 90% of the project cost is provided as low-interest loans, reducing the burden on operators. Private operators are responsible for operation and management to ensure the project is run faithfully according to the original plan, while the public sector supports and supervises the entire process as the owner.

Residents can live in housing within the city at about 50% of the market rent and receive specialized and diverse housing services.

The pilot project for theme-type purchased rental housing being promoted this time consists of a total of 1,000 units. Private operators with high expertise in housing operation and management, such as non-profit corporations, public interest corporations, and social enterprises wishing to construct and operate theme-type purchased rental housing, can participate in the pilot project competition.

The competition will begin on the 13th through the LH website, and after two rounds of evaluation and negotiation of purchase costs, the final selected projects will be announced early next year.

Kim Hongmok, Director of Housing Welfare Policy at the Ministry of Land, said, "We hope that this theme-type purchased rental pilot project will combine private creativity and autonomy with the public sector's stable housing service provision function."