LH expands purchase commitments for unsold homes on public housing sites in the capital region

Korea Land and Housing Corporation (LH) is implementing additional commitments to purchase unsold homes in private housing projects on public housing sites in the capital region. The measure follows the government's plan to accelerate housing supply to stabilize the rental and home sales markets.

LH said on the 9th that it would provide purchase commitments for apartment housing parcels purchased by private developers on LH public housing sites in the capital region where construction begins by the end of 2027.

Eligible sites include previously sold land in the capital region that will be available for use by the end of 2027. Approximately 18,000 homes to be built on these sites are directly covered.

Purchases are limited to unsold homes with an exclusive floor area of 85 square meters or less that private developers request LH to purchase. Purchase prices range from 85% to 92% of the sales price, depending on the unsold share, early construction starts and development size; this range includes incentives of up to 3 percentage points. A construction start by the first half of 2027 adds 2 percentage points, while developments with at least 500 homes receive an additional 1 percentage point.

LH expects the purchase commitments to ease the construction industry's burden in deciding to start projects and bring construction starts forward. LH explains that the commitments could improve project conditions by providing credit support, lowering financing interest rates and facilitating the transition to full project financing (PF).

Details on applications and eligibility criteria are available in the notice posted on LH's website.

President Lee Jae-myung posted at least 10 messages on social media on the 5th, the final day of the National Foundation Day holiday. He sought to communicate directly with citizens and promote policies.

President Lee said many were reluctant to begin construction over concerns about selling homes, and that he had instructed LH to commit to buying unsold homes for rental use. He said he had directed the new land minister and LH to focus on supplying large numbers of homes early.

President Lee offered his own assessment of housing price instability. He said a sharp decline in permits, centered on Seoul, had led to a substantial reduction in housing supply after a time lag and was the biggest cause of short-term housing price instability. He cited concentration in the capital region, excessive lending that encourages housing speculation, and an unfair tax system as medium- and long-term causes.

He also outlined a supply plan for young people and the middle class. President Lee said he would use tax revenue collected above projections to supply large numbers of long-term public rental homes for these groups early.

President Lee also shared a citizen's post criticizing the government's real estate policies on X. He asked that the policies be judged after their results were seen.

President Lee says he ordered LH purchase commitments for unsold homes and accelerated housing supply

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