The Ministry of Land, Infrastructure and Transport and Korea Land & Housing Corporation (LH) said on the 8th they will hold an open call to purchase public land reserves for supply-demand control worth 500 billion won to prepare for a shortage of dwellings in the greater Seoul area. This is a follow-up measure to the Aug. 13 rapid dwellings supply plan.
This call is the first pilot project to kick off land reserves for supply-demand control that preemptively secure land for market stability.
The Ministry of Land, Infrastructure and Transport (MOLIT) and LH will conduct an open call for institutions, corporations, and individuals, and plan to select purchase targets totaling 500 billion won by comprehensively reviewing the potential for use in public utilities, the suitability for public reserves, and other factors for the submitted land offered for sale.
Eligible purchases are land of at least 3,300 square meters in Seoul, Gyeonggi, and Incheon, and it must be suitable for building multiunit dwellings. In addition to central and local governments and public institutions, individuals and corporations can apply to sell land they own. However, land with buildings, land encumbered by mortgages or seizures, and land with acquisition or use restrictions such as farmland and forestland are excluded.
The purchase price will be determined in consultation with the landowner within the average of the appraised values by two appraisers selected by LH.
LH will provide on-site preliminary consulting from the 8th to the 28th of this month for institutions and corporations that hold idle land, and will accept sale applications for one month from the 29th to the 28th of next month. It will evaluate the potential for use in public utilities and the suitability for public reserves to select purchase targets, notify eligibility in Dec. this year, conduct appraisals and price negotiations in Jan. next year, and sign contracts in Feb.
Shin Yun-geun, land policy director at the Ministry of Land, Infrastructure and Transport (MOLIT), said, "Through these public land reserves for supply-demand control, we will push proactively so that land secured in the greater Seoul area can be quickly used to supply dwellings in urban areas," adding, "As this is the first pilot project implementing the public land reserve system for dwellings supply, we will gather a wide range of opinions and refine the system."