GH to Offer Nation's First 'Equity-Accumulation Homes'... Applications Open Nov. 9

240 59-Square-Meter Equity-Accumulation Homes
360 84-Square-Meter Homes for General Sale, and More

Gyeonggi Housing & Urban Development Corporation (GH) said on November 4 that it will supply 240 equity-accumulation homes in Gwanggyo New Town in Suwon, the first such offering in the country, and accept applications from November 9 to 11.

Perspective rendering of the Gwanggyo A17BL apartment complex in Gwanggyo New Town, Suwon, Gyeonggi Province. GH

Applications for special supply will be accepted on November 9, first-priority general supply applications on November 10, and second-priority applications on November 11. Winners will be announced on November 18. The resale restriction is 10 years, and the mandatory occupancy period is five years.

Gwanggyo A17 Block, the site of this offering, comprises 600 homes in total: 240 equity-accumulation homes with an exclusive area of 59 square meters and 360 homes for general sale with an exclusive area of 84 square meters.

Equity-accumulation homes are a form of public housing in which buyers pay only part of the initial sale price when they move in to acquire a stake in the home, then purchase the remaining stake in installments over an extended period. The model was introduced to reduce upfront housing costs for first-time homebuyers without homes, including young people and newlyweds who have difficulty raising a large sum of money.

Residents of Gwanggyo A17 Block will be able to move in after paying for a 25% stake based on the initial sale price, and will acquire the remaining 75% stake in stages over 20 years. Rent will be charged separately for the remaining stake held by the public sector, in addition to the initial stake. The payment for each additional stake will be calculated by adding interest for the relevant period to the initial housing sale price. The mandatory owner-occupancy period is five years, and the resale restriction is 10 years.

In particular, this offering will apply for the first time special supply categories for young people (15%) and households with newborns (20%), introduced following Gyeonggi Province's call for improvements to the system. As a result, the overall share of special supply has increased from 50% to 70%.

In September, GH received an award at the Local Public Institution Innovation Awards for its equity-accumulation housing model, which helped people without homes take a step toward homeownership. It was recognized for developing a new public housing model that significantly reduces the upfront financial burden on young people and newlyweds without homes, and for establishing the legal and institutional framework for effective supply.

GH President Kim Yongjin said, "With equity-accumulation housing now established as a national housing policy, we will further strengthen our ability to carry out these projects and take the lead in stabilizing housing for ordinary citizens and improving housing welfare."

This content was produced with the assistance of AI translation services.