The Housing and Urban Guarantee Corporation (HUG) announced on the 7th that it will hold the first private proposal project contest of 2024 to supply public-supported private rental housing.
This contest is a follow-up measure to the "Plan to Revitalize Housing Supply for National Housing Stability" jointly announced by related ministries in September last year. HUG plans to recruit private proposal-type project operators with the goal of supplying 20,000 private rental housing units annually.
This project involves real estate investment trusts (REITs) constructing or purchasing rental housing on sites proposed by the private sector, with the Housing and Urban Fund co-investing in the establishment of the REITs.
A HUG official explained, "The contest was introduced to more effectively select high-quality private rental projects," adding, "This is a project type where tenants can live safely for more than 10 years at rental prices lower than the surrounding market rates."
For projects selected as preferred negotiators, support will be provided after reviewing housing quality such as finishing materials, verifying construction costs, and deliberating HUG’s fund investment.
The first contest announcement will be posted on the HUG website on the 8th, and letters of intent can be submitted from the 11th until 5 p.m. on the 22nd. HUG plans to receive project applications from May 8 to 10 and select preferred negotiators thereafter.
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