Quoting Liputan6.com, this project is part of the priority of the Workers' Party of North Korea to provide vertical housing or apartments for its citizens and make Pyongyang a famous city in the world. Kim Jong Un emphasized that this development is a state effort to provide decent facilities for its people without burdening them with additional costs.

Collaboration with private capital is a rational choice for building the free housing project. Institutions that are granted permission to build this will seek private investors to fund the entire project construction. The completed buildings will then be divided between the institutions and the investors who will sell them to make a profit. However, with the large investment that makes the selling price very high, most North Korean citizens are unable to afford them.