LH "Purchasing Over 50,000 Newly Built Rental Houses This Year"

Lee Han-jun, President of Korea Land and Housing Corporation (LH), is speaking. Photo by Yonhap News

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Korea Land and Housing Corporation (LH) announced on the 9th that it will purchase more than 50,000 newly built rental housing units this year.

LH advanced the project start time by two months compared to last year and issued the '2025 Newly Built Rental Housing Announcement' on the 2nd. This is a measure in line with the government's '8·8 Supply Plan' announced last year. The plan includes purchasing a total of more than 100,000 newly built rental housing units from last year through this year, and in Seoul, LH will buy these houses without limit until the supply of non-apartment housing normalizes.

Newly built rental housing refers to rental housing purchased from private sector-built homes. To achieve the purchase target, LH is increasing dedicated personnel and providing incentives such as floor area ratio relaxation to developers.

To accelerate the supply of newly built rental housing, LH will establish a 'Rental Housing Purchase Division' within the metropolitan area regional headquarters, where purchase volumes are concentrated. Inside the division, there will be an 'Early Construction Support Team' and a 'Purchase Quality Management Team' to speed up construction and simultaneously manage quality. Additionally, the number of personnel in charge of rental housing purchase at the metropolitan area regional headquarters will increase from 228 this year to 272.

To revitalize the newly built rental housing project, a construction cost-linked method will be applied to houses with 50 or more units in the metropolitan area. Accordingly, land prices will be determined by appraisal, and building prices will be set based on construction costs calculated by an external cost calculation agency. This is a measure to appropriately reflect the construction cost of private developers in the purchase price.

Also, as the purchase target volume increases, the annual purchase limit per developer will be removed. Last year, LH could only purchase up to four cases per developer annually. The specialized rental housing developer recruitment, which supplies according to operational themes, will be changed to accept applications throughout the year to expand developer participation opportunities.

Considering the characteristics of newly built rental housing, LH will establish customized design and construction standards suitable for non-apartment housing and present standard design layouts to developers to reduce design time. Appropriate construction deadlines by building scale will also be suggested to encourage early construction start.

In addition, to manage housing quality, LH will collaborate with external construction management (CM) specialized companies and introduce a smart construction management system.

Detailed information can be found in the integrated newly built rental housing announcement on the LH Subscription Plus website. Phone or in-person consultations are also available by regional headquarters.

Yoo Byung-yong, Acting Head of LH Housing Welfare Headquarters, said, "LH will focus on achieving rental housing purchase targets to fill the housing supply gap in the private sector and contribute to housing stability for low-income households without homes."

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