Detached house plot in Kaarelan Kuninkaantammi, plot 33322/5, Pitkäkoskentie 10, area 370 m², building rights 160 k-m², Helsinki

The City of Helsinki will lease seven (7) detached-house plots in the Pitkäkoski area of Kuninkaantammi in district 33 (Kaarela) through an open tender to the bidder with the highest accepted price offer. Each plot has its own auction item, where bids are made. Bids may be submitted for each plot.

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

The bid is made for the total price of the plot. The initial annual rent is 3.5% of the offered plot price. After the initial annual rent, the plot rent is tied to the annual average cost-of-living index from the previous year.

Once the plot has been built to a state approved for occupation by building control, the tenant may, for five years from the start of the land lease agreement, choose to purchase the plot. A long-term lease agreement for the plot is made when a building permit has been granted for the plot. The offered price and the rent based on it will be increased if the floor area in the detailed plan on which the bid is based is exceeded. The tenant applies for a building permit with the landlord’s lease decision, which is valid for one year.

The lease includes an equalisation review for the first time 20 years after the start of the long-term land lease agreement. After that, the next equalisation reviews are carried out at 10- or 20-year intervals, according to the tenant’s choice. During equalisation reviews, the rent is compared with the Helsinki metropolitan area housing price index when determining the rent level.

A reservation fee of EUR 5,000 must be paid for the plot. After payment of the reservation fee, a lease decision is made for the plot, allowing the tenant to apply for a building permit. The reservation fee will be credited against the rent for the long-term land lease if the long-term lease is completed. Otherwise, the reservation fee will not be refunded.

More detailed instructions can be found in the attached Price Competition Brochure.