Korea's First Modular Detached Housing Complex Using REITs
Contributing to Population Inflow and Regional Balanced Development
Korea Land and Housing Corporation (LH) announced on the 29th that it will hold a celebration ceremony for the move-in of the single-family housing complex for return-to-farm and return-to-village residents, "Doro Village," in Gurye, Jeonnam.
The complex name Doro Village comes from the word "doro-da" (a Jeonnam dialect meaning "to return"), reflecting the spirit of "suguchoshim" (returning to one's roots), and was created as the name of the return-to-farm and return-to-village housing complex.
Doro Village is a pilot project of a package-type return-to-farm and return-to-village housing development REIT, constructed by DL E&C, which possesses high-quality eco-friendly modular technology, starting in June last year.
The complex conducted resident recruitment in May this year and showed a competition rate of about 4:1 amid strong interest from actual demanders wishing to return to farming and rural living.
The package-type return-to-farm and return-to-village housing development REIT business model combines the single-family housing projects in local areas, which are difficult to promote realistically due to low profitability, with stable income-generating multi-family housing construction projects in the metropolitan area, proceeding as a package.
Doro Village is located at 377-3, Oesan-ri, Sandong-myeon, Gurye-gun. On a site of 25,127㎡, 26 single-family houses with a ground floor (attic separate) and a net floor area of 74.5㎡ each, along with one community facility building, were constructed.
Residents can live on a lease basis for up to four years, and after the lease period ends, they can continue to reside through conversion to sale. The lease conditions are a deposit of 30 million KRW and a monthly rent of 160,000 KRW.
Notably, this is the first single-family housing complex in Korea applying modular construction methods, currently undergoing certification for building energy efficiency grade 1++ and zero-energy building grade 5 (energy self-sufficiency rate between 20% and less than 40%).
The complex is rich in tourism and recreational resources behind Jirisan, such as Jirisan Lake Park nearby, and major infrastructure including elementary and middle schools, the township office, and health center are located within a 5-minute drive, providing very high residential convenience.
Gurye-gun, Jeonnam, designated as a growth promotion area and population decline area by the Ministry of the Interior and Safety, continues to face population decrease and aging; however, with this housing move-in, 56 people (39 from the metropolitan area) are expected to move in, contributing to revitalizing the local community and economy.
LH plans to conduct a call for candidate sites targeting local governments (including 70 growth promotion areas) after consultations with related agencies such as the Ministry of Land, Infrastructure and Transport, and to select follow-up project sites fairly and transparently through external expert evaluations.
LH President Lee Han-jun said, “Based on our development project know-how, we are planning various business models, including linking with vacant house renovation or maintenance projects in areas with population decline and interest,” adding, “We will continuously create tangible results that the public can feel to respond to local extinction and promote regional balanced development.”
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