Single-family house plot in Mellunkylä's Tankomäki, plot 47369/4, Tankomäenkatu 24, area 462 m², building entitlement 210 k-m², Helsinki

The City of Helsinki will rent, by open tender to the highest accepted price bid, nine (9) detached-house plots in the Tankomäki area, 47th district (Mellunkylä). Each plot has its own auction where bids are submitted. Bids may be made for any or all plots.

The City has the right to accept or reject bids submitted in the price competition.

The rent is determined on the basis of the accepted bid with a 3.5% yield target. Before signing the long-term lease the tenant must obtain an authorisation from the landlord to apply for a building permit. The authorisation is valid for up to 1 year and a rent equivalent to two months will be charged for that period. The authorisation will be finalised when the long-term lease is agreed. A long-term lease decision may be made after a building permit has been granted at the tenant’s request. If the plots are built with more floor area for the main use than is shown in the local detailed plan for the plot, an additional purchase price/additional land rent will be charged for the excess in accordance with the draft deed/draft land-lease agreement.

The tenant has the option to purchase the plot for five (5) years from the start date of the long-term lease, provided a dwelling building has been completed and approved for use by building control and the obligations under the long-term land-lease have been complied with. If the purchase option is not exercised, the lease term is approx. 80 years. The rent includes a so-called level adjustment: the annual rent for the residential area is adjusted at each level-adjustment date using the average of the annual mean values of the Helsinki metropolitan area house price index (old owner-occupied apartment price index 2020=100) for the three (3) years preceding the adjustment (the adjustment index). For each level adjustment the base index is the previous year’s annual value of the same house price index as at the start of the lease. The level-adjusted annual rent is calculated by dividing the adjustment index by the base index and multiplying the annual rent by the resulting ratio. Thereafter the rent is reviewed every 10 or 20 years at the tenant’s choice against the same index. If a level adjustment cannot be carried out because the house price index is unavailable at an adjustment date, the new annual rent for the residential area will be determined instead of the level-adjusted initial rent by using the average of the Consumer Price Index values for the year preceding that adjustment (the adjustment index), adjusted for the implemented residential building right (m²), its market value as stated in the lease (€/m²) and a 4% yield requirement; rent development will then be linked to changes in the Consumer Price Index in accordance with the lease terms. The base index is the index specified at the start of the lease.

A reservation fee of €5,000 must be paid in accordance with the invoice before the plot lease decision in order to apply for a building permit. The reservation fee will be credited against the long-term land rent if the long-term lease is realised. Otherwise the reservation fee is non-refundable.

More detailed instructions are in the attached Price Competition brochure.

NOTE! The plots included in the price competition are located in a groundwater area and therefore ground-source heat cannot be installed on them.