Gyeonggi-do Supplies Nation's First 'Equity Accumulation Type Sale Housing'... Groundbreaking Next Year

Gyeonggi Province is introducing the nation's first 'Gyeonggi Province-type Installment Savings Housing (Equity Accumulation Sale Housing)'.

Gyeonggi Province announced that the 'Gwanggyo A17 Block Public Housing Project New Investment Promotion Agreement,' which will begin construction next year in the Gwanggyo New Town in Suwon, passed the Gyeonggi Provincial Assembly on the 15th.

Equity accumulation sale housing is a type of public sale housing where residents gradually increase their housing equity by paying monthly installments, similar to saving money in an installment savings account, eventually owning their home outright after 20 to 30 years.

Unlike general sale housing where the sale price is paid in a lump sum at the time of move-in, this housing supply type was introduced to reduce the initial financial burden by allowing payments to be spread over 20 to 30 years.

Recently, housing prices relative to income have risen sharply, and homeownership rates have stagnated, making it difficult for young, newlywed couples without homes, who lack initial capital, to enter the housing market. To lower the barriers to homeownership, promote asset accumulation, and alleviate housing cost burdens to provide housing stability opportunities, Gyeonggi Province has been preparing to introduce this system since the 8th term of the provincial government in collaboration with Gyeonggi Housing and Urban Corporation (GH) and the Gyeonggi Provincial Assembly.

Overview and Conceptual Diagram of the First Gyeonggi-do Type Savings Housing Nationwide

The project site, Gwanggyo A17 Block, is an excellent location within Suwon Gwanggyo New Town, equipped with transportation and convenience facilities. It will include 240 installment savings housing units with a dedicated area of 59㎡ (25 pyeong), suitable for young people, newlyweds, and families adapting to changes such as newborn births, along with 360 general sale housing units of 84㎡ (34 pyeong), totaling 600 units. Construction is planned to start in the first half of 2026 and be completed in the second half of 2028.

Gyeonggi Province plans to provide 'homeownership' opportunities to young people and newlywed couples who find it difficult to secure funds all at once by adding young and newborn households to the special supply targets in consultation with the government and introducing low-interest loan products.

To ensure continuous supply by improving the business viability of public housing developers, tax reforms such as property tax reductions on public equity are also being pursued.

After reviewing the policy effects through the supply of public housing at Gwanggyo A17 Block, Gyeonggi Province plans to continue supplying Gyeonggi Province-type installment savings housing to other areas including the 3rd New Towns such as Namyangju and Goyang, where Gyeonggi Housing and Urban Corporation participates, as well as Gyeonggi Opportunity Towns like Buk Suwon Techno Valley (TV).

Son Imseong, Director of the Gyeonggi Province Urban Housing Office, said, "Gyeonggi Province, together with the Gyeonggi Provincial Assembly and Gyeonggi Housing and Urban Corporation, will do its utmost to develop and continuously supply various types of public housing, including the 'Gyeonggi Province-type Installment Savings Housing,' to provide housing stability and a housing ladder for residents."