Gwangju Urban Corporation to Begin Construction of "Nuguna Jip" Private Rental Housing in Energy Valley by Year-End

The "Nuguna Jip" public-supported private rental housing project in Nam-gu Energy Valley D1 Block, promoted by Gwangju Urban Corporation, is being resumed following changes to the project structure and confirmation of REITs investment. The project previously faced a risk of failure due to rising construction costs and interest rates, but after a fund investment review in the second half of this year, the goal is to break ground in December 2026.

According to Gwangju Urban Corporation on April 23, the project will construct a total of 762 apartment units-441 units of 59㎡ and 321 units of 84㎡-on a 36,313㎡ site within the Energy Valley Industrial Complex in Nam-gu, Gwangju. It is being promoted as a public-supported private rental housing model to help citizens without homes achieve residential stability and build assets.

Gwangju Urban Corporation.

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The distinguishing feature of "Nuguna Jip" is its "fixed sale price" structure, which allows tenants to purchase their units at a pre-determined price after the 10-year rental period ends, based on the price at their initial move-in. During the rental period, tenants can live at a rent set at 75-95% of the current market rate. The fixed sale price is approximately 293.6 million won for the 59㎡ type and about 449 million won for the 84㎡ type.

Transportation infrastructure improvements are also planned. The Gwangju-Gangjin Expressway Daechon Interchange near the project site is set to open in December 2026, and the Gwangju-Naju metropolitan railway project is also underway. The project is expected to benefit from improved transportation links in addition to its location within the Energy Valley Industrial Complex, which offers easy access between home and workplace.

The project is scheduled to begin construction in December 2026, following board approval and REITs establishment in the first half of the year and a fund investment review by the Housing and Urban Guarantee Corporation (HUG) in the second half.

Kim Seungnam, President of Gwangju Urban Corporation, stated, "Even though market conditions were challenging, we restructured the project to keep our promise to citizens and have brought it back on track. We will create a residential complex that supports both stable housing and asset building."

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