The Korea Land and Housing Corporation (LH) will supply more than 190,000 public dwellings and 28,000 public land plots this year.
On the 23rd, LH announced its '2025 work plan' containing this information.
LH aims to approve 100,000 public dwelling projects this year. This is a slight decrease from last year's target of 105,000 units. 37% of the approved projects will be supplied to youth, newlywed couples, and the elderly. The goal for starting construction of public dwellings this year is set at 60,000 units, an increase of 20% from last year's target of 50,000 units.
LH noted that concerns about housing supply instability continue due to the soaring construction costs and the tightening of real estate project financing. Therefore, it plans to boldly accelerate the schedules for both public dwelling approvals and construction, increasing the proportion in the first half of the year.
To quickly supply dwellings in urban areas and normalize the non-apartment market, LH aims to supply a total of 90,000 units, including 50,000 newly built rental dwellings, 4,000 existing rental dwellings, and 36,000 lease rental dwellings.
LH plans to support fast supply of the contracted newly built rental dwellings by providing architectural permits and offering incentives such as advance payments for early construction units. The tenant recruitment schedule will shift from 'after completion' to 'after construction.'
LH will proceed with the urban public dwelling complex project, which is responsible for 94% (49 locations) of the overall project, with construction planned this year in three areas of Seoul: Banghak, Ssangmun, and Yeonsinnae. Additionally, it has decided to purchase 7,500 units of properties affected by rent fraud this year to support victims with auction profits.
Measures will also be implemented to lower public dwelling sale prices. First, target costs will be established for each project area, strengthening management and verification. In addition, the plan is to reduce development costs by expanding the usable area and shortening project timelines.
To complement the economy, more than 57% of this year's annual investment plan of 21.6 trillion won will be executed in the first half of the year. Of the total public institution investment plan of 66 trillion won this year, LH's investment accounts for 33%.
LH plans to establish a dedicated organization and personnel for the purchase of 3,000 unsold apartments in local areas, set specific purchasing standards, and execute purchasing announcements to expedite the recovery of the local real estate market. It also announced plans to timely promote major transportation networks, such as the metropolitan rapid transit (GTX) centered around the third new towns.
This year, goals include the start of construction on the second phase of GTX-A Changnyeong Station, the establishment of a basic plan for the extension of Seoul Subway Line 3 Gyosan, and the planning for the extension project of Line 9 Namyangju Wangsuk.
In large-scale project districts like Gwangmyeong-Siheung New Town, LH and the housing & urban fund will jointly establish a new city real estate investment trust to reduce financial burdens such as compensation. A sales method tailored to the characteristics of each district and market conditions, such as land package-type bidding, will also be introduced.