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LH claims to buy 84% costly… “It’s inevitable to produce rental housing tailor-made to demand.”

LH Headquarters

In response to the Residents’ Coalition for Financial Justice’s criticism that Korea Land and Housing Company (LH) wasted greater than 1 trillion gained in tax cash by buying rental housing within the Seoul and Gyeonggi areas at excessive costs, it defined on the sixteenth, “We’re calculating the acquisition worth fairly.” .

LH stated in a press assertion on the sixteenth, “It’s inevitable to pursue a brand new development buy settlement undertaking to produce rental housing tailor-made to demand,” and “we’re calculating the acquisition worth fairly.”

The civic group Residents’ Coalition for Financial Justice (Citizen’s Coalition for Financial Justice) held a press convention this morning and introduced that 84% of the rental houses in Seoul and Gyeonggi Province bought by LH, Seoul Housing and Communities Company (SH) and Gyeonggi Housing and Communities Company (GH) over the previous three years had been costly. It was claimed that it was acquired in a sure method.

Specifically, for LH, the proportion of newly constructed contract buy homes that needed to pay a better worth than the prevailing buy was greater than 80% of the whole worth, and the most costly buy per unit was the contract buy home bought by LH within the Seoul space, price 400 million gained. It was analyzed that it was bought as much as 100 million gained extra expensively.

The Residents’ Coalition for Financial Justice urged the Ministry of Land, Infrastructure and Transport to make institutional enhancements, akin to utterly suspending new development contract buy and considerably strengthening the acquisition standards for bought rental housing.

In response to this, LH defined, “The worth of a brand new development buy contract undertaking shouldn’t be calculated based mostly on development prices, and so forth., however is calculated based mostly on the appraisal quantity based on the regulation, and all three establishments, LH, SH, and GH, are making use of the identical requirements.” did. He then refuted, “The appraisal quantity could differ relying on the situation and housing circumstances of the home bought by every establishment, so a easy comparability of common buy costs between establishments shouldn’t be applicable.”

Specifically, within the case of a brand new development buy settlement undertaking, “LH secures rental housing within the downtown space by means of pre-orders to enhance housing high quality, akin to pre-design overview and high quality inspection at every stage of development, to preemptively and stably safe the amount of bought rental housing. “We plan to proceed to pursue this in accordance with authorities coverage,” he emphasised.

Relating to the demand to considerably strengthen the acquisition standards for rental housing, he stated, “Specialised organizations are fairly evaluating housing costs in accordance with the appraisal regulation and are reviewing the appropriateness of the housing appraisal quantity utilizing the quantity calculated by the price technique.” He added, “Public sale “It’s not a normal transaction kind, and since the successful bid charge varies relying on the traits of every particular person home and the true property market, it’s tough to view the public sale worth as appropriately reflecting the worth of a traditional home,” he argued.

Relating to the proposal to actively buy homes affected by lease fraud by utilizing the general public preemptive buy proper, “The particular regulation stipulates the acquisition of homes broken by means of auctions and public auctions, however some outcomes haven’t been achieved as a consequence of the truth that gentle public auctions haven’t but begun in earnest, together with the postponement of sunshine public auctions.” “There are some shortcomings,” he stated. “We’ll actively focus on with the federal government to have the ability to buy extra when auctions and public auctions start in earnest sooner or later.”

Reporter Hwang So-young, Donga.com fangso@donga.com

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