A Study on the Comparison of Development Gains Distribution Effects of Privately-Owned House with Public Purpose

Abstract

This study confirmed the effect of redeeming development gains from privately owned houses with public purpose and public sale houses by comparing the distribution ratio of development gains taken by the public and by individuals. Using the A2-1 block in Namyanrposegju’s Byeolnae district as a case site, the degree of distribution of development profits by each type is compared when the units are sold six years after moving in. As a result, the general type of public sale house (84.9%) is the type of housing for which the initial buyer takes more than 50% of the development profit, followed by the Newlyweds Hope Town B type (30% loan, 2 children) (73.4%), and the sharing type of public sale house (65%). The land leased house not only has minimal development gains taken by the initial buyer, but it is also likely that the original value of the building will be eroded due to increased depreciation costs over time. This study is meaningful as it can provide the basic data to compare the development gains distribution effects of the current intermediate housing model before developing various intermediate housing models that properly share development gains and continuously supply low-cost housing.