LH "Annual Housing Supply of 220,000 Units... Strengthening Customized Housing Welfare"

Korea Land and Housing Corporation (LH) announced on the 23rd that it will supply a total of more than 218,000 housing units by the end of this year, including private housing built on public land.

This measure aims to send a signal to the market to increase housing supply amid ongoing concerns about housing supply and demand instability. The volume of approved projects is 100,000 units, and public housing such as purchase and jeonse rental housing amounts to 90,000 units, totaling about 190,000 public housing units. The volume of public land housing reaches 28,000 units.

The target for housing starts is around 60,000 units, a 20% increase from 50,000 units last year. The 50,000-unit scale project districts, including Seoul Seoripul, announced during last year's August 8 measures, will also expedite the approval schedule as much as possible. LH stated, "Housing supply instability continues due to the surge in construction costs and the tightening of project financing (PF). To allow demanders to quickly feel the effects of supply, we will boldly advance both approval and construction schedules and increase the proportion in the first half of the year."

A model house of an apartment in Pyeongtaek-si, Gyeonggi-do. Photo by Yonhap News

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The target for newly built purchase rental housing, promoted to normalize the non-apartment market, is 50,000 units. To ensure that the volume contracted last year can be supplied quickly, LH plans to assist with building permits and provide incentives such as early construction start deposits. The recruitment period for tenants will be advanced from after completion to after the start of construction to enhance policy effectiveness.

LH will begin construction this year at three Seoul locations?Banghak, Ssangmun, and Yeonsinnae?under the ‘Urban Public Housing Complex Project,’ for which LH is responsible for 94% (49 sites) of the entire project. Other project districts will also be pushed forward rapidly. To support victims of jeonse fraud, LH plans to purchase 7,500 damaged housing units and provide auction profit support. Among the 100,000 housing units approved this year, 37% will be supplied to youth, newlyweds, and the elderly.

To lower sale prices, LH will set target costs by project district and strengthen management and verification. Measures to reduce development costs include increasing usable floor area and shortening project schedules. LH will develop standard modular housing floor plans for wide use by private companies. Housing quality will also be improved by utilizing LH’s self-developed first-class floor noise design standards and the largest domestic testing facilities.

LH’s investment plan confirmed for this year amounts to 21.6 trillion won, accounting for about one-third of the total public institution investment plan. To maximize fiscal execution effects, 57% will be spent in the first half of the year, marking the largest scale ever. While completing transportation networks such as the Metropolitan Area Express Train (GTX) centered on the 3rd New Town, LH will also develop integrated landscaping designs that combine urban and housing green spaces.

Hyundai Apartment, Sibeom Complex, Bundang-gu, Seongnam-si, Gyeonggi-do. Photo by Yonhap News

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For the 1st New Town, LH plans to establish special maintenance plans and designate project implementers within the year for four leading districts that requested LH’s participation. The Yongin Semiconductor National Industrial Complex, which received project plan approval at the end of last year, will conduct basic surveys and compensation announcements within the year. LH expects essential facility construction to be possible around 2028.

For large-scale project districts such as Gwangmyeong-Siheung, LH and funds will jointly invest in a new town real estate investment trust (REIT) to alleviate financial burdens. Various sales methods tailored to the characteristics of each district and market conditions, such as land package-type public offerings, will be introduced. As part of safety management, LH plans to reduce the weight of qualitative evaluations by external reviewers to enhance fairness. From the second half of this year, video records of the construction process will also be disclosed.

LH President Lee Han-jun said, "As the lives of the people and the national economy are difficult, LH will faithfully fulfill its role this year as well, including rapid housing supply and investment execution."

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