Korea Land & Housing Corporation (LH) said on the 22nd it will hold a "non-dwelling use-change remodeling purchase-commitment method operator contest" to supply public rental dwellings for young people and newlyweds by using non-dwellings such as vacant commercial spaces in city centers.
The non-dwelling use-change remodeling project changes the use of non-dwellings such as vacant commercial spaces and offices in city centers to (quasi)dwellings and supplies them as public rental dwellings. LH will pursue the priority supply of a total of 2,000 units this year at prime locations within Seoul and Gyeonggi regulated area by running both the "direct purchase method" and the "purchase-commitment method."
This contest uses the "purchase-commitment method," under which the private sector and LH sign an agreement in advance, the private sector remodels a non-dwelling building, and LH purchases it and supplies it as public rental dwellings.
Eligible properties are neighborhood living facilities, business facilities, training facilities, facilities for children and older adults, lodging facilities, and factories (within a Knowledge Industry Complex) that are located at prime sites within regulated area in Seoul and Gyeonggi Province (speculative overheating districts and areas subject to adjustment), built within 30 years with seismic design applied, and capable of a use change to (quasi)dwellings.
In particular, starting with this contest, the target regions and building types for purchase will be expanded. The target regions will be expanded to 15 cities and districts in Seoul and Gyeonggi Province by adding three cities and districts in Gyeonggi Province (Guri, Giheung District in Yongin, and Dongtan District in Hwaseong) that were recently designated as regulated areas. For building types, in addition to existing commercial spaces, offices, and lodging facilities, factories (within a Knowledge Industry Complex) will be newly purchased. However, as relevant laws, including the Special Act on Public Housing, are currently being revised, reviews of deliberation and project target selection will be conducted depending on the progress of the legal revisions.
The project procedure will proceed in the order of document screening for submitted properties, preliminary verification, deliberation on purchase-commitment targets, purchase commitment, use-change remodeling, and LH purchase and supply, with the goal of starting construction in the first half of 2027.
Purchase applications may be filed by a non-dwelling building owner (individually) or jointly by a non-dwelling building owner and a remodeling operator, and the purchase price will be calculated based on an appraisal of the building after the use-change remodeling.
The application period runs from 9 a.m. on the 27th to 6 p.m. on Sept. 9, and required documents such as the remodeling plan should be submitted by email. For details, see the purchase announcement posted on LH Subscription Plus.