The Korea Land and Housing Corporation (LH) is investing 500 billion won to secure residential land for housing supply in the capital region. In contrast, the sale of existing commercial and office properties continues to face challenges, even with the implementation of a five-year interest-free installment plan and the land return system. LH is simultaneously working to secure housing land while addressing the unsold non-residential properties.
According to LH, applications for the purchase of 'public reserve land for supply adjustment in 2026' will be accepted from September 29 to October 28. The purchase amount is set at 500 billion won, targeting land parcels of at least 3,300 square meters in the capital region suitable for multi-family housing construction. LH will evaluate the location, accessibility, market conditions, and future utilization potential before making purchase decisions.
This approach allows the public sector to secure land in advance and utilize it promptly when housing supply is needed. An LH official stated, "The public reserve system is a very useful mechanism that allows for the rapid utilization of land when necessary. We will do our utmost to ensure that housing and public projects needed by the citizens are supplied and promoted in a timely manner."
On the other hand, existing non-residential properties continue to face unsuccessful sales despite efforts to reduce payment burdens. LH re-offered three commercial land parcels in the Goyang Janghang district under a five-year interest-free condition on September 15, but all parcels failed to sell. The total expected price was approximately 900 billion won.
Similarly, all parcels of general commercial land in the Goyang Jichuk district, which applied a one-and-a-half-year grace period along with the five-year interest-free and land return system, were also unsold last month. The land return system, which allows buyers to cancel contracts without forfeiting deposits under agreed terms, aims to reduce buyer risk.
Recent supply announcements have included conditions to lower buyer burdens. According to LH's application platform, nine parcels in the Hwaseong Neungdong, Taean 3, Bibong, and Hyangnam 2 districts have applied both the land return system and grace installment plans.
The Shiheung Janghyeon, Geomo, and Hajung office facility land is being resupplied under a five-year interest-free condition that includes a one-year grace period, and is currently being sold through a first-come, first-served contract with brokerage assistance. Conditions of three to five years interest-free are also applied to neighborhood living facilities and general commercial land. Despite a similar offering in May with a one-year grace and five-year interest-free plan, resupply announcements have been repeated.
In the Paju Unjeong 3 district, contracts for gas stations and parking lots will provide brokerage incentives upon completion through licensed brokers, utilizing private brokerage networks to find buyers.
Experts emphasize the need to promote sales through financial incentives while also assessing whether existing commercial and office land plans align with actual demand. Park Hapsu, an adjunct professor at Konkuk University’s Graduate School of Real Estate, stated, "It is necessary to adjust urban planning from the outset by comprehensively considering trends in retail and commercial districts and consumer patterns."
* This article has been translated by AI.
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