Seoul's only LH-led public housing ground-breaking this year pushed to next year; re-tenders pile up

The only Korea Land and Housing Corp. (LH) private-participation public housing project scheduled to break ground in Seoul this year has been delayed to next year, it has been confirmed. Several other sites — including Goyang Changneung, where LH solicited private partners in the first half of the year — also failed to attract competing bids and have been re-tendered, underscoring that publicly led housing supply is not gaining momentum as quickly as expected.

According to LH and other sources, the ground-breaking for the Seo-gye private-participation public housing project, which will build 200 integrated public rental units, has been pushed back to next year. The project pairs artist rental housing with a mixed-use cultural facility that the Ministry of Culture, Sports and Tourism is developing near Seoul Station. In 2022, LH selected the HJ Jungkong Industry consortium — comprising HJ Jungkong Industry and Dongbu Construction — as the preferred negotiating partner through a competitive tender, but construction has yet to begin.

The delay stems from holdups in compensating landowners of private parcels within the project site. "Private land is included in the site alongside parcels owned by the Ministry of Land, Infrastructure and Transport and Yongsan-gu, and the compensation process has taken longer than planned," an LH official said. "Because this is not a project LH is pursuing alone — coordination with the Ministry of Culture, Sports and Tourism, the Seoul Metropolitan Government and other parties is required — the ground-breaking schedule has changed."

While the Seo-gye project's delay is tied to land compensation, a growing number of LH private-participation public housing projects have been running behind schedule. In the first half of this year, LH solicited private partners for sites across Gyeonggi Province — including third new towns such as Goyang Changneung, as well as Pyeongtaek Godeok and Suwon Dangsu — but some districts drew only a single bid and were voided, triggering re-tenders.

This month, LH re-tendered four districts — including Pyeongtaek Godeok A-72BL and A-73BL, totaling roughly 3,300 units — that had been part of its second solicitation round this year, along with third-round sites Goyang Changneung B-1BL, Suwon Dangsu 2 B-7BL and Seongnam Bokjeong 1 B-2BL.

The government has been expanding the LH direct-implementation model through its Sept. 7 policy package, but conditions vary considerably from site to site depending on project viability, land compensation progress and coordination with relevant agencies. "Private construction companies have no choice but to comprehensively assess actual demand, construction cost levels and future pre-sale risk before committing to a project," said Kim Hyo-seon, a senior real estate specialist at KB Kookmin Bank. "Stable supply can only be achieved if projects are pushed forward in areas where viability is secured and demand is there to support them."

Meanwhile, LH has set a target of soliciting roughly 18,000 new units this year and breaking ground on 16,000 of them. "The re-tendered sites were simply re-advertised under regulations because a single bid does not constitute valid competition — there is no disruption to the existing schedule," an LH official said. "We will pursue an additional solicitation of roughly 4,000 units after June and advance projects in line with our annual supply plan."

“강남 집값 주춤한 거 아니었어?” 원베일리서 또 100억 찍었다 [부동산360]

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