Publicly Supported Private Rental Housing: Bidding for 6,000 Units Opens on the 29th

Ministry of Land, HUG, and LH to Accept Letters of Intent Starting January 19

The Ministry of Land, Infrastructure and Transport announced that, starting from December 29, it will publicly recruit developers to supply 6,000 units of publicly supported private rental housing, in cooperation with the Housing and Urban Guarantee Corporation (HUG) and Korea Land and Housing Corporation (LH). Of these, approximately 4,000 units will be general rental housing, and around 2,000 units will be Silver Stay accommodations.

The general publicly supported private rental housing will be operated as rentals for at least 10 years at rents no higher than 75% of the market rate (based on special supply criteria). These units will be supplied to households without homes, with at least 20% of the total allocated as special supply for youth, newlyweds, and seniors. Silver Stay accommodations will be operated as rentals for at least 20 years at rents no higher than 95% of similar senior welfare housing facilities. It is possible to supply all units as Silver Stay, or to develop mixed Silver Stay complexes that combine Silver Stay with general publicly supported private rental housing.

Among the publicly supported private rental housing, Paju Wodong A-2 Block, where the developer is to be selected through a land bidding process. Provided by the Ministry of Land, Infrastructure and Transport

If the Housing and Urban Fund and private companies jointly establish a real estate investment company (REIT), this company will either construct or acquire the rental housing. The project is divided into two types: private proposal competitions, in which private firms propose sites for development, and land bidding competitions, in which rental housing is built on public land. Once selected, developers may receive support after HUG’s fund investment review and other procedures.

Of the 4,000 units in the private proposal competition, approximately 3,000 units will be general format, and about 1,000 units will be Silver Stay. This is the first time such a private proposal competition has been held since the launch of the Silver Stay pilot project. The land bidding competition will cover about 2,000 units across three sites: Paju Wodong A-2 Block, Wonju Musil S1 Block, and Uiwang Chopyeong A1 Block. Paju Wodong will be offered in a standalone competition, while the sites in Wonju and Uiwang will be bundled together as a package, with a single preferred negotiation partner selected for both.

Following the announcement on December 29, letters of intent to participate will be accepted for five days starting from January 19 of the following month. Only developers who submit letters of intent within the deadline will be eligible to submit business proposals, and a preferred negotiation partner will be selected after a review process in the first half of next year.