Purchased rental housing this year, 45,000 units supplied..’The largest ever’

Purchased rental housing support structure and quantity [자료=국토교통부]

The Ministry of Land, Infrastructure and Transport announced on the 8th that it will purchase and supply 45,000 units of purchased rental housing for housing stability for low-income families such as youth, newlyweds, and the elderly.

This year’s target of 45,000 units is an increase of more than 60% compared to last year’s purchased rental housing supply of 28,000 units (27,000 units plan). It is the largest supply target ever since it started the purchased rental housing business in 2004.

Purchased rental housing is a housing that public housing businesses such as Korea Land and Housing Corporation purchase and renovate, renovate, or remodel existing houses, and then rent them at low prices to tenants. The advantage is that it can quickly supply houses that can be accessed directly in the city center.

This year’s target of 45,000 units is planned to be secured through ▲a new purchase agreement ▲public remodeling ▲existing housing purchase method.

The new construction purchase agreement is planned to supply 21,000 units. This is a method of contracting before completion to purchase a house built (or planned to be built) by a private business operator after completion by a public housing business operator. It has the advantage of supplying high-quality new housing by utilizing private expertise. This year, it is characterized by an increase of 75% compared to last year (12,000 in 2020 → 21,000 this year).

In particular, in order to expand the supply of new mid-sized housing (60-85m2) that can accommodate 3-4 or more households, the company provides preferential supply of public housing and additional points incentives to businesses who have supplied more than a certain amount of housing through a purchase agreement. It is planning to establish a new special contract guarantee for easing.

Public remodeling plans to supply 8000 units. This is a method of supplying old houses or vacant houses (such as shopping malls, tourist hotels, etc.) after major repairs or removal. It has the advantage of supplying new housing and improving the urban environment. In particular, tourist hotels that exceed the housing area ratio could not be repurposed due to the difference between housing and floor area ratios, but from the second quarter of this year, amendments to the laws are being pursued so that they can be supplied as public remodeled houses.

The purchase of existing houses is planned to supply 16,000 units. It has the advantage of being able to quickly supply a house that has been granted completion permission from the licensed government office, and supplies it to the low-income class after renovation and repair, such as paperwork and flooring.

Suho Su-ho, head of Public Housing Support Division, Ministry of Land, Infrastructure and Transport said, “This year, the supply of purchased rental housing has been greatly expanded, and as we promoted various institutional improvements last year, it will help more low-income families to stabilize housing.” “We will continue to develop the purchased rental housing business so that newlyweds give up their dreams, give up childbirth, and the elderly do not worry about moving.”

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