Public Offerings in 14 Districts Including the 3rd New Town
Private Operators to Be Selected by April
"Aiming to Stimulate the Construction Industry and Revitalize Public Housing"
Korea Land and Housing Corporation (LH) announced on the 26th that the total scale of projects with private construction companies this year amounts to 8 trillion won. This corresponds to a total of 27,000 households, the highest ever. Compared to last year, the supply volume increased by 3,000 households, and the project cost rose by about 1.6 trillion won.
This year's new public offerings will be conducted in 13 package forms across 14 districts, including the 3rd New Town. The project schedule has been advanced by two months compared to last year, with plans to announce the selection of private operators around April. The goal is to commence construction within the year. The plan aims to revitalize public housing supply and stimulate the construction industry.
Private participation projects are jointly implemented by LH and construction companies. Utilizing private technology and brands enables the supply of diverse public housing. Since 2014, a total of 70,000 households have been supplied through this project, with a project cost of approximately 21 trillion won. The share is planned to be increased to about 30% of the annual permitted volume by 2027.
The newly announced public offering districts this year consist of 2 to 3 blocks per package, averaging around 2,000 households. Two packages totaling about 6,300 households across 5 blocks have been approved in the Gwangmyeong Siheung district, and a package of 3 blocks with 2,400 households in the Administrative City Complex and Seokmun National Industrial Complex districts is at the construction stage. In the Pyeongtaek Internationalization Plan district, the project is proceeding with 3 blocks totaling 2,300 households. By project stage, 9,100 households across 12 blocks have commenced construction, and 15,400 households across 16 blocks have been approved. In the Siheung Geomo district, a modular method project of 800 households is underway, with construction scheduled for next year.
LH will adjust the standard construction cost upward to reflect the rise in construction expenses. Measures to alleviate the financial burden on private operators will be pursued. New criteria for cost adjustments will be introduced based on ground conditions or changes in higher-level plans. A ‘long-life specialized project’ will be introduced to improve residential quality by mitigating inter-floor noise and enhancing remodeling convenience.
On the same day, LH held the ‘Private Cooperation Governance Forum’ to explain this year’s project plans and improvements to private operators and to gather industry opinions. Oh Jooheon, head of LH’s Public Housing Headquarters, stated, "We have expanded the volume of private participation projects to supply housing and revitalize the construction industry through close cooperation between private and public sectors," adding, "We have significantly improved the public offering criteria to encourage active participation by private operators."
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