The government will announce the 25th real estate measure on the 4th to stabilize the housing market. It is reported that a plan to supply new homes for 850,000 households nationwide will be announced. This is the largest supply measure for the government.
Government announced today’s 25th real estate plan
The largest number of 325,000 households in Seoul
Policy to actively expand public redevelopment and reconstruction
Promotion of deregulation on the right to sunlight to increase supply
An official of the Dongdo Democratic Party, who has been involved in the establishment of real estate policy, said on the 3rd, “We know that the supply of new housing will be 850,000 nationwide, including 325,000 households in Seoul and local governments at a regional level.” President Moon Jae-in announced at a press conference on the 18th of last month that’extraordinary supply measures to alleviate public unrest at once’. Contrary to initial expectations, plans to expand housing supply not only to metropolitan areas such as Seoul, but also to local metropolitan areas will be prepared. This is because the market situation is unstable, with housing prices soaring in local metropolitan areas such as Busan, Daegu, and Daejeon. The government plans to actively expand the supply of housing in these cities by promoting public redevelopment and reconstruction, high-density development of station areas, semi-industrial areas, and low-rise residential areas.
The government is reviewing ways to improve the method of utilizing the floor area ratio donations to increase private participation in urban supply. This is because most of the candidates for urban supply are privately owned. Currently, about half of the floor area ratio, which has been increased by donations, is being removed by public lease. However, there is a tendency to be reluctant to participate in the project due to a large number of negative perceptions about public leases. In order to overcome these obstacles, the government plans to significantly increase the proportion of apartments for sale on private land by using public sale, conditional redemption, land rental, and equity-saving housing in addition to public rental.
The government is also reviewing system improvements for public reconstruction and redevelopment, station zones, semi-industrial areas, and high-density development of low-rise residential areas. In the case of the station area development project, it is reported that it overlaps a large part with the candidate site for the Seoul New Town development in the past. In order to expand supply, urban regulations such as sunlight and parking lots will be relaxed, and the floor area ratio will be increased by up to 700%. It is also considering expanding the radius of the station area from 350m to 500m. It is promoted as a public development method in which public institutions such as Korea Land and Housing Corporation (LH) and Seoul Housing and Urban Corporation (SH) lead the project to secure publicity and distribute development profits. A proposal to temporarily transfer some of the authority related to urban planning, such as reconstruction and redevelopment, concentrated on the heads of local governments, to the central government (Ministry of Land) is also discussed. This is because there are many cases where the previously announced real estate supply measures faced difficulties due to opposition from local governments or residents.
In order to increase the speed of urban development projects, a plan to ease the requirements for resident consent when promoting public redevelopment and reconstruction is also discussed. Currently, more than three-quarters of the residents must agree to proceed with the maintenance project, which means that it will be reduced to two-thirds. Although the speed of business will accelerate, controversy over private property rights infringement may be raised, and incentives will likely be strengthened.
It is also expected that a large-scale new housing site development district will be designated in the outskirts of Seoul. This is because there is no such thing as supplying new housing sites to maximize the effect of housing supply.
Reporters Kim Won and Kim Joon-young [email protected]