Ministry of Land, Infrastructure and Transport, from the 23rd, to evaluate social contribution and profit sharing plans when bidding for public housing supply

The appearance of Dongtan New Town in Hwaseong-si, Gyeonggi-do. Hankyung DB
The nationwide public housing supply method will be improved to a form of’evaluation’ that is supplied to companies with high social contribution, such as rental housing construction, instead of the existing’lottery’. In the meantime, some housing companies are expected to reduce’bee bidding’ to secure public housing by mobilizing Paper Company.
The Ministry of Land, Infrastructure, and Transport has established a competitive land supply system that evaluates the’rental housing construction plan’ and’profit sharing degree’ of housing builders participating in public housing supply tenders from the 23rd in accordance with the amendment of the’Enforcement Decree of the Special Public Housing Act’. It was announced on the 21st that it will be implemented in earnest. The Ministry of Land, Infrastructure, and Transport plans to establish public offering methods, procedures, and purchase standards for the selection of land supply targets during the first half of the year, and will supply land in earnest from the second half of the year.
This new system is one of the’Quality Lifetime Housing’ and the’Public Housing Land Supply System Improvement Plan’ among the’Residential Stability Support Plan for the Low and Middle Class’ announced in November of last year. The goal is to break away from the existing lottery principle and activate a competitive method that evaluates business plans including social contributions. At the same time, it was prepared to supply high-quality public rental housing and to allow the general public to enjoy development profits.
First of all, land supply standards are diversified. Existing land supply systems have had side effects such as so-called’bee swarm bidding’ that mobilized affiliates by lottery as a rule. In the future, various supply methods such as’lottery’,’competitive bidding’ and’voluntary contracts’ will be decided in consideration of the purpose of the land, the person to whom it will be supplied, and the stability of the land price.
The social mix, which mixes private sales and public leases, is also a major factor in the evaluation. In order to expand the social mix in the public housing district and to supply high-quality public rental housing, it is possible to supply residential land by evaluating the plan to construct a part of the housing built on private sale land as rental housing. Through this, the development profits of private construction companies will be contributed to the construction of high-quality rental housing and will be supplied as public rental housing at the same level as the private sale house.
The plan to share profits for the general public as well as development projects is activated. Until now, land created through public development projects has been recognized only as an area such as construction companies and some asset prices due to high prices, and there has been a limit to the participation of the general public. In the future, land will be provided by evaluating the business plans of public offering companies (share offering ratio, public offering dividend rate, small-investor stock allocation plan, etc.) where the general public can easily participate in profitable business districts. In addition, in order for the public to stably participate in the public moritz, it plans to give conditions for the public offering through prior agreements with the public offering companies, and thoroughly manage the implementation.
Reporter Jinsoo Kim [email protected]
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