The 23rd National Property Policy Deliberation Committee
[Sejong=Asia Economy Reporter Son Seon-hee] The government has decided to extend the lease period for state-owned property from the current 30 years to 50 years and expand the scope of developable state-owned property. It is also promoting plans to utilize idle military sites in Namyangju, Gyeonggi Province, as residential land and other uses.
On the 12th, Ando-geol, Vice Minister of Strategy and Finance, presided over the 23rd National Property Policy Deliberation Committee plenary meeting and reviewed and approved the "2022 Comprehensive Plan for State-Owned Property," which includes these details.
The government has been operating the "Private Participation Development System," which develops state-owned property through joint investment with the private sector since 2011. However, due to strict project implementation requirements, there has been virtually no development performance so far. Accordingly, the lease period has been extended up to 50 years, and the conditions for development, which were previously limited to "general property under the jurisdiction of the Ministry of Strategy and Finance unused for more than five years," have been significantly expanded to include "all general property, developable administrative property, and special account and fund property."
Accordingly, pilot projects will be conducted next year to lease to the private sector for 50 years and develop and operate office facilities, commercial facilities, etc., on the sites currently undergoing entrusted development of state-owned property: the Seoul Songpa Central Radio Management Office (complex development) site and the former Seoul National University Agricultural College site in Suwon, Gyeonggi Province (land entrusted development).
The National Property Policy Deliberation Committee also decided to support housing supply by utilizing state-owned property. To address housing issues for youth and newlyweds, it will promote state-owned land development projects (15 locations, 20,000 public housing units) and youth and government official housing complex development projects (16 locations, 2,900 housing units).
In particular, the committee reviewed and approved a project plan to develop idle military sites in Namyangju, Gyeonggi Province, which became available after the relocation of military units in 2018, into residential land, industrial complexes, and other uses. The site will supply a total of 3,200 housing units, including 1,000 public housing units for youth and newlyweds. Additionally, 4,400 housing units will be built on the rear site of the Uijeongbu correctional facility, and 1,300 public housing units will be constructed on the military site in Daebang-dong, Seoul.
Vice Minister Ahn said, "To stabilize the real estate market urgently at the national level and secure housing stability for ordinary citizens, it is essential to reliably support the supply of public housing using state-owned property. We will make policy efforts to ensure that the development of state-owned land in the metropolitan area proceeds successfully as originally planned and can spread to other regions."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
