The Ministry of Land, Infrastructure and Transport announced on the 20th that it will start purchasing 3,000 unsold dwellings in local areas after completion from the Korea Land and Housing Corporation, in response to the deterioration of the construction market due to the increase in unsold housing stock after completion.
The target dwellings are unsold apartments that have gone through the tenant recruitment announcement process after completion, and all local areas excluding the metropolitan area are eligible. The decision on whether to purchase the applied dwellings will be determined after a separate purchase review, focusing on the potential for rental use and future conversion to sale.
The purchase price will be determined based on the seller's desired price presented by the company within the 'purchase ceiling price,' starting with the dwellings where the 'seller's desired price' is lower compared to the 'purchase ceiling price.'
The purchase ceiling price will be set at approximately 83% of the appraised value, which has undergone a separate appraisal considering past purchase cases and industry self-help efforts. However, it will be applied differently based on the seller's desired ratio and the duration of unsold status.
The purchased dwellings will be supplied as 'conversion type guaranteed rent' for six years, where residents can live at about 90% of the market price (with an additional 2 years if they do not wish to convert to sale), and plans are in place to recruit residents as soon as the purchases for each complex are completed.
Kim Gyu-cheol, director of the Housing and Land Division of the Ministry of Land, Infrastructure and Transport, noted, 'In order to complement the stagnant construction market in local areas, the public's role in resolving unsold dwellings is crucial,' and added, 'We will thoroughly manage the selection of high-quality dwellings in excellent locations by closely examining the industry's self-help efforts, such as sufficient price discounts, and the potential for conversion type guaranteed rent.'
Detailed information regarding the purchase announcement of unsold dwellings after local completion can be confirmed on LH Subscription Plus starting from the 21st.