Korea Land & Housing Corporation (LH) is expected to finalize the selection of construction companies for the privately funded public housing project by the end of this month. The total project cost is 8.3 trillion won, and the scale of supplied dwellings will reach 30,000 units. More than 10 construction companies, including Hyundai E&C and DL E&C, will participate in supplying multi-family dwellings in Pyeongtaek and Bucheon in Gyeonggi Province, Dangjin in South Chungcheong Province, and Miryang in South Gyeongsang Province.
According to LH on the 4th, the selection of construction companies for the 34 blocks and 29,010 dwellings planned to be supplied as part of the privately funded public housing project this year (total project cost of 8.3 trillion won) is scheduled to be completed by the end of this month. LH has finished the announcements for phases 1 through 5 and has currently selected construction companies for phases 1 and 2. An LH official noted, "The selection of construction companies for phases 3 to 5 will be completed by the end of this month."
In the privately funded public housing project, LH provides the land, while private construction companies are responsible for the construction and sale of the dwellings. The construction firms have no initial financial burden for land acquisition, and LH can utilize the brands and technologies of private builders.
In the already selected phases 1 and 2, major construction companies such as Hyundai E&C and DL E&C have agreed to participate in the construction.
One of the phase 1 projects, located in the Godeok New Town of Pyeongtaek, will be carried out by the Hyundai E&C consortium (Hyundai E&C, Dongbu Corporation, Wooree Construction) for the combined project of the A-12, A-27, and A-65 blocks. This project will create 2,381 dwellings with a total project cost of 771.7 billion won. The project will be developed under the 'New:Home standard type,' which can be applied for by any household member registered for a subscription savings account, with exclusive areas ranging from 60 to 85 square meters and a floor area ratio of 159% to 169%.
The project in Miryang, South Gyeongsang Province, specifically in the A-1 and S-2 blocks of Miryang Bubuk, has been selected for construction by the BS Hanyang consortium (BS Hanyang, Daebo Construction, Gangsan Construction). It will create a total of 1,066 dwellings at a project cost of 290 billion won. The project will include options for 'New:Home standard type' and 'New:Home selective type,' which allows for distribution after a 6-year lease, as well as 'integrated public rental' enabling long-term residence of over 30 years, with construction for areas of 60 square meters or less and 60 to 85 square meters. The floor area ratio is 149%.
The phase 2 public offering projects will be established in Bucheon, Gyeonggi Province, and the Seokmun National Industrial Complex in Dangjin, South Chungcheong Province. The project to create 2,757 dwellings in the A12 and A2 blocks of the Bucheon Daejang area and the A-2 block of Bucheon Yeokgok will be carried out by the Namkwang Engineering & Construction consortium (Namkwang Engineering & Construction, Jungheung Construction, KR Industries, C&C General Construction) at a total project cost of 733.1 billion won. In the administrative complex city, three sites will be developed with a total of 2,362 dwellings (total project cost of 685.8 billion won) comprising 52M2, 52L2, and B-6 in Seokmun National Industrial Complex in Dangjin, led by the KyeRyong Construction Industrial consortium (KyeRyong Construction Industrial, DL E&C, Daebo Construction, and Isu Construction).
For the phase 3 project in Namyangju Wangseok, where the construction company has yet to be finalized, strong candidates include Hanshin Engineering & Construction and Kumho Engineering & Construction. LH intends to determine all construction companies up to phase 5 by the end of this month, following the selection of preferred bidders. Additionally, this year, they plan to receive project approvals for 18 blocks and 17,935 dwellings and start construction for 12 blocks comprising 9,073 dwellings.
An LH official noted, "Since last year, there have been many requests from the industry for an increase in construction costs, and we reflected this in the privately funded public housing project, resulting in higher construction costs that improved the profitability of the project. With heightened interest from construction companies, we expect rapid progress in selecting construction companies and starting the projects."
Lee Eun-hyung, a researcher at the Korea Construction Policy Institute, said, "Usually, the hardest task in housing development projects is securing land, but in LH's privately funded projects, LH secures the land, allowing construction companies to proceed without that burden. However, the willingness and interest of construction companies to participate in the project will vary depending on the level of profitability."