Looking into LH's Supply This Year... The 'Three Essentials' of Price Competitiveness, Central Location, and Brand Premium

<Top>Public Sale & Newlywed Hope Town
26,000 Units in 23 Locations Nationwide... Large-Scale Sale of 4,348 Units in Yangju, Gyeonggi Next Month
Focus on Incheon Yeongjong & Yangju New Town in H1, Fierce Competition in Prime Areas of Sejong & Gwacheon in H2

[Asia Economy Reporter Jo Gang-wook] The Korea Land and Housing Corporation (LH) has unveiled its '2021 Nationwide Land and Housing Supply Plan.' From this month onward, the public sale and newlywed hope towns supplied by LH will total 26,498 households. The land supply amounts to a total of 1,910 parcels, covering 4,837,000㎡. Single-family housing parcels are the most numerous at 945 sites, followed by commercial and business parcels at 468, industrial distribution at 274, and multi-family housing at 60 parcels. Additionally, 119 commercial units within complexes will be supplied. We examined this year's supply plan, which is of great interest to actual demanders, by dividing it into housing and land.

Public Sale and Newlywed Hope Town

Recently, demanders' interest in public sale apartments on public land has been growing stronger. Due to the government's real estate measures, private sale complexes supplied in metropolitan public land districts now have longer resale restrictions and mandatory residence periods, so it is expected that public sale apartments with competitive prices will become even more popular. In particular, public sale apartments supplied by LH have price competitiveness compared to private apartments. Moreover, as private participation by major construction companies increases, there is also the advantage of expecting brand premiums. The locations are generally situated in central areas within the districts, offering excellent locational conditions.

According to LH, this year, a total of about 26,000 households will be introduced through public sales and newlywed hope towns in 23 locations nationwide, including the metropolitan area such as Gwacheon Knowledge Information Town, Administrative City, and Seoul Daebang. For public sales, the largest supply is scheduled next month in Yangju, Gyeonggi Province (4,348 households). In August, the second largest supply will be in Cheondong 3 District, Daejeon (2,751 households).

◇In the first half, Incheon Yeongjong and Yangju New Town attract attention= This month, a private joint project supply of 1,499 households will begin in Block 1 of Yongmaru Station, Michuhol-gu, Incheon. 'Yonghyeon Xi Crest,' supplied by the GS Construction consortium, is a private participation public sale complex with prices set reasonably below market prices. Of the total 2,277 households, 1,499 are offered to the general public excluding priority supply to district residents. It is within walking distance of Inha University Station and Sungui Station on the Suin-Bundang Line, and close to Incheon-daero, the 2nd Gyeongin Expressway, and the Metropolitan Area 2nd Ring Expressway (Incheon-Gimpo section).

Next month, a total of 4,348 households will be supplied in Yangju Hoecheon District, including 1,304 households in A18 Block, 995 households in A21 Block, and 2,049 households in Okjeong A-1 Block. In Yangju Okjeong, 'Yangju Okjeong Lin Familier' will be developed by Woomi Construction and Shindongah Construction. It consists of 2,049 households, with 1,010 units of 74㎡ (exclusive area) and 1,039 units of 84㎡. The GTX-C line connecting Yangju and Suwon is scheduled to begin construction at Deokjeong Station this year.

In the same month, 'Yeongjong International City Seohan Idaum' will be supplied in A42 Block of Yeongjong Sky City, Incheon. It consists of 930 households in total, with 64㎡, 74㎡, and 84㎡ units. The administrative procedures are underway aiming for the opening of the 3rd Yeonryuk Bridge, a long-awaited project for residents of Yeongjong Island and Cheongna, by the end of 2025.

In June, the last supply of the first half will be released in Pyeongtaek Godeok Internationalization Plan, Gyeonggi Province (1,582 households), and Yeongjong, Incheon (A40 Block 870 households, private joint project).

◇In the second half, many prime locations such as Sejong and Gwacheon= In the second half, the following are awaiting supply: △July Anseong Ayang (644 households), Sejong Administrative City (995 households) △August Incheon Paju Unjeong 3 (660 households), Goyang Jichuk (612 households), Geomdan (1,666 households), Siheung Janghyeon (534 households), Daejeon Cheondong 3 (2,751 households) △September Incheon Yeongjong (600 households), Changwon Gapo (402 households) △October Incheon Geomdan (807 households). Additionally, within the year, Sejong Happy City and Gwacheon Knowledge Information Town in Gyeonggi will supply 525 and 319 households respectively through private joint projects.

Meanwhile, for newlywed hope towns, 5,365 households will be supplied including △May Uiwang Gocheon, Gyeonggi (580 households) △June Donam, Daegu (549 households) △July Gangseo, Seoul (348 households) △December Ulsan Daun 2 (835 households), Pangyo Daejang (749 households). For 10-year public rental housing, 678 households in Paju Unjeong and 712 households in Daejeon Cheondong are planned to be supplied respectively.