Gyeonggi Province is set to become the first in the nation to fully implement the construction of "Gyeonggi Province Savings Housing" (equity accumulation-type housing).
On September 11, Gyeonggi Province announced that it had decided to build 240 units of housing with an exclusive area of 60 square meters or less in the Gwanggyo A17 Block in Suwon as Gyeonggi Province Savings Housing. The province completed an open call for private developers by August 21 and plans to select a preferred negotiation partner within this month.
The Gyeonggi Province Savings Housing is a flagship housing policy of Governor Kim Dongyeon and is also a new public housing support initiative that has drawn interest from the Lee Jaemyung administration.
In fact, after Minister Kim Yoonduk took office at the Ministry of Land, Infrastructure and Transport, the ministry established equity accumulation-type and profit-sharing housing as major public housing supply strategies. In July, at a government policy meeting chaired by Prime Minister Kim Minseok, these models were presented as new housing options that are affordable for the public, including young people without homes and newlyweds.
The equity accumulation-type housing model outlined by the Ministry of Land, Infrastructure and Transport is exactly the Gyeonggi Province Savings Housing currently being promoted by Gyeonggi Province.
The Gyeonggi Province Savings Housing is a new public sale housing supply model in which residents gradually accumulate equity in their homes, much like making monthly savings deposits, and achieve 100% ownership after 20 to 30 years. Unlike conventional housing sales, buyers do not pay the full purchase price at once upon moving in; instead, they pay in installments over 20 to 30 years, significantly reducing the initial financial burden.
Savings Housing is not about repaying a loan, but about acquiring equity. This lowers the barrier to homeownership for young people and newlyweds with limited initial capital and assets, and provides opportunities for gradual asset building. The mandatory residence period is set at five years, and the resale restriction is ten years, after which third-party sales are allowed.
In response to the recent sharp rise in housing prices, various models such as land-lease, profit-sharing, and equity accumulation-type housing have been introduced to ease the burden on real homebuyers. Savings Housing, which combines the affordability of land-lease housing with the asset-building benefits of profit-sharing housing, is being recognized as an innovative housing stability measure for the public.
Currently, Gyeonggi Province, through Gyeonggi Housing & Urban Development Corporation (GH), is conducting a pilot project for 240 units of Savings Housing with a 59-square-meter (25-pyeong) exclusive area in the Gwanggyo A17 Block in Suwon.
In April of this year, the project received investment approval from the Gyeonggi Provincial Council. After evaluating potential developers, a private developer will be selected within this month. Construction is scheduled to begin in the first half of next year, with completion targeted for the second half of 2028.
However, Gyeonggi Province noted that, although the Gyeonggi Province Savings Housing is classified as a type of public sale housing under the Special Act on Public Housing, there have been no actual cases of supply so far, highlighting the need for institutional improvements.
Accordingly, Gyeonggi Province has made three proposals to the central government: improving the criteria for selecting residents, enhancing project feasibility by easing tax regulations for public housing developers, and establishing new loan products for buyers.
A Gyeonggi Province official stated, "The Gyeonggi Province Savings Housing is an innovative new model for public housing sales. However, since it is designed for young people and newlyweds who lack initial capital, it is necessary to include young people and couples with children under two years old as special supply recipients. In addition, tax relief to support the business feasibility of public housing developers and loan support for Savings Housing residents are also needed."
Meanwhile, according to a survey conducted by GH in June of this year among 800 Gyeonggi Province residents without homes, 94% supported expanding the supply of Gyeonggi Province Savings Housing, and 92% agreed on the necessity of the policy.
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