The Ministry of Land, Infrastructure and Transport said on the 16th it will break ground on 70,000 newly built purchase-for-lease units in the greater Seoul area by 2027 to deliver visible housing supply results.
Newly built purchase-for-lease is a program in which a public housing operator signs a purchase agreement before a private party builds new dwellings, then purchases them after construction and supplies them as rental dwellings. It is regarded as an effective means to achieve rapid supply results even under conditions where supplying dwellings in city centers is difficult.
The ministry said it will actively push a plan to break ground on 140,000 newly built purchase-for-lease units in the greater Seoul area as one of the measures to expand housing supply, and will break ground on 70,000 units—about half—within two years.
The ministry explained, "We will pursue more than 90% of the 70,000 units in prime locations, focusing on officetels, apartments, and urban lifestyle dwellings with good residential conditions."
Starting this year, the government has been introducing a groundbreaking-stage incentive (advance payment of up to 10% of the purchase price) and establishing an "early groundbreaking support team" within Korea Land & Housing Corporation (LH) to strengthen field-centered project management, among other institutional improvements to speed up supply. As of the end of Aug., the number of newly built purchase-for-lease agreements signed stands at 24,000 units.
First Vice Minister Lee Sang-gyeong of the ministry visited a newly built purchase-for-lease site in Dongdaemun District, Seoul, and said, "Newly built purchase-for-lease is a way to quickly supply dwellings in prime locations within city centers that are favored by newlyweds and young people," adding, "While supplying 140,000 newly built purchase-for-lease units in the greater Seoul area going forward, the government will achieve early, tangible housing stability for the public by focusing on high-quality dwellings in prime locations like today's Dapsimni site."