Korea Land and Housing Corporation (LH) plans to purchase more than 50,000 newly built rental homes this year. LH announced today (the 9th) that they implemented the ‘2025 New Construction Purchase Rental Notice’ on the 2nd, stating that this is to stabilize the housing market and rental prices.
This initiative is a decision following the government’s announcement in August last year of expansion plans for housing supply aimed at providing stable housing for the public. The expansion plan includes purchasing over 100,000 newly built rental homes from last year to this year, with unlimited supply in Seoul until non-apartment supply normalizes.
To expedite the project, LH has advanced the start date by two months compared to last year and strengthened its organization and manpower. A dedicated organization for purchase rentals, the ‘Purchase Rental Business Office’, will be newly established at the regional headquarters in the metropolitan area where purchase volumes are concentrated.
The office will comprise an Early Construction Support Team and a Purchase Quality Management Team to handle everything from housing purchase to early construction support and quality management in one go. Additionally, LH plans to increase the number of personnel handling purchase rentals in the metropolitan region to 272 this year, continuing from last year, to accelerate the business.
For the activation of the new purchase rental project, a construction cost linked method will be applied to housing with 50 or more homes in the metropolitan area. This method calculates land prices through appraisal and building prices through an external cost calculation agency to reflect private developers’ construction costs in the purchase price.
Furthermore, the standard that limited the annual purchase count to four per the same business operator last year will be abolished. LH explained this is due to the increased policy volume, among other reasons.
Additionally, the specialized purchase rental business recruitment, which was conducted twice a year, will be switched to ongoing applications throughout the year starting this year to expand opportunities for business participation.
Yu Byung-yong, Acting Head of the Housing Welfare Headquarters, stated, “LH will focus on achieving purchase rental goals to swiftly fill the housing supply gap in the private sector and contribute to the housing stability of homeless citizens.”
You can find more detailed information through the integrated new construction purchase rental notice posted on LH Subscription Plus (www.apply.lh.or.kr).
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