Targeting 268,000 Housing Units in Seoul Metropolitan Area... 99,000 Units Commenced This Year

The government is pursuing the largest-scale supply plan in history to stabilize the housing market in the Seoul metropolitan area, achieving results that lead to actual construction commencement and sales. The government has set a target to supply a total of 268,000 units in the Seoul metropolitan area and has completed the commencement of 99,000 units so far, which is approximately 37%.

According to the 1st regular housing supply briefing held by the Ministry of Land, Infrastructure and Transport on the 16th, the government is accelerating the speed of supply through pan-government monitoring following the announcement of the August 8 housing supply measures. The Office for Government Policy Coordination and the Ministry of Land, Infrastructure and Transport plan to hold regular briefings every two weeks on the status of supply implementation and major achievements.

In the video, Kim Yong-su, the 2nd Vice Minister of the Office for Government Policy Coordination, stated that the government has been inspecting housing supply through a pan-government consultative body led by the Prime Minister's Office since immediately after the announcement of the August 8 measures. It was explained that regulations and difficulties are being resolved by reflecting voices from the field, focusing on various sites such as public land, private redevelopment, and public-supported private rentals. The Ministry of Land, Infrastructure and Transport is accelerating permit procedures through rapid permit support centers and field centers, while the Financial Services Commission and the Financial Supervisory Service are conducting intensive management and support, such as connecting customized support plans for more than 300 housing PF (Project Financing) sites. In the future, an 'Integrated Housing Supply Support Center' will be operated by integrating the separately managed centers.

Status of Commencement by Public and Private Sectors... Supply Recovery in Seoul Redevelopment, etc.

Kim Yu-tak, the 1st Vice Minister of the Ministry of Land, Infrastructure and Transport, explained the specific progress of the supply, stating that among the target of 268,000 units for commencement in the Seoul metropolitan area this year, 99,000 units have commenced construction as of October. This figure corresponds to approximately 37% of the annual target. Vice Minister Kim explained, "Through three rounds of housing supply measures, the government has prepared the largest-scale supply plan in history, and we plan to start construction on more than 15,000 units in the Seoul metropolitan area within five years."

Looking at the sectors, public housing supply is progressing stably. Among the target of 16,000 units for public housing commencement this year, commencement has reached a level of 26%, and in particular, 7,300 units have started construction in the 3rd Generation New Cities, such as Goyang, Changneung, Gyeyang, Incheon (2,300 units each), Hanam, Namyangju, and Wonju (1,100 units each). In downtown Seoul, about 2,000 units have commenced construction through complex development utilizing district office sites, etc.

Supply in the private sector is also becoming visible. Through private redevelopment projects, about 3,100 units in Seoul, about 1,500 units in Junggye-bon-dong, and about 1,400 units in the Hillstate station area vicinity completed commencement this year. In the case of general private housing, 47,000 units commenced construction this year. The government plans to resolve regulations and disputes quickly and support projects through tax and fiscal incentives to vitalize private supply. In particular, the number of purchase contracts, a leading indicator of construction, has increased by more than 60% on average per month since last August, recording a level of 18,000 cases, so construction performance is expected to expand in the future.

Recruiting 15,000 Residents by Year-end... Continued Expansion of Supply in the Seoul Metropolitan Area

The government plans to focus on ensuring that housing supply leads to actual move-ins during the remainder of this year. The total supply volume for the Seoul metropolitan area this year is projected to be between approximately 218,000 and 235,000 units. The government intends to closely monitor the progress of major projects, such as public and new purchase acquisitions.

Particularly in the case of public housing, 14,800 units were supplied up to the third quarter of this year, and the government plans to announce additional sales for more than 10,000 units by the end of the year. This includes about 2,000 units in the 3rd Generation New Cities such as Goyang and Changneung (Goyang 1,100 units, Daejang, Bucheon 500 units, etc.), and about 1,300 units of public sales are scheduled in high-demand areas such as old downtown Seoul. Additionally, for public rental housing, residents for 14,800 units were recruited up to the third quarter, and the government will pursue additional recruitment of more than 5,000 units by the end of the year, including 1,400 units in the Gwangju area.

To ensure that the supply plan does not remain merely as figures on paper, the government will establish a 'Digital Housing Supply Dashboard' to transparently disclose the entire process, including permits, commencement, sales, and move-ins, so that citizens can check it directly. Through this, the government plans to increase predictability for citizens regarding housing supply by continuously disclosing detailed information such as permits, commencement, sales, move-ins, future supply plans, and policy news.

Resolving Supply Bottlenecks Through Deregulation and Financial Support

The government has already completed 48 institutional improvements to remove institutional obstacles blocking housing supply. Last September, urban building regulations were rationalized, such as relaxing floor area ratios and parking standards for urban-type living houses. Furthermore, financial and tax support measures are being carried out in parallel, such as adjusting the LTV (Loan-to-Value) for developers to construct new general housing and extending benefits where units are excluded from the count of houses owned. Additionally, the amendment of subordinate statutes to induce early commencement by developers is in its final stages.

Vice Minister Kim Yu-tak emphasized, "The supply plan must manifest as substantial results that lead to actual construction, sales, and moving in. We will continue field-oriented inspections to ensure that necessary housing can be quickly supplied to necessary areas by concentrating all government capabilities." In particular, as construction volume is concentrated in the fourth quarter, the government plans to preemptively respond in cooperation with relevant ministries to financial difficulties or the possibility of permit delays according to project schedules.

The government intends to continuously disclose the status of permits and commencement to increase the predictability of housing supply in the future and strengthen pan-government cooperation to resolve the financing difficulties of private developers. The government will continue field-oriented inspections to ensure that supply measures do not stay at the planning stage but are completed through actual construction and moving in.

Source: original video (YouTube)