President Moon “Goal to alleviate national anxiety in housing supply”… Will Seoul quantity burst?

President Moon Jae-in
President Moon Jae-in

(Seoul = Yonhap News) Reporter Choi Jae-gu = President Moon Jae-in answering a reporter’s question at a New Year’s press conference held at the Blue House Chunchu Hall on the 18th. [email protected]

(Seoul = Yonhap News) Reporter Kim Jong-hyun = Before the New Year (February 12), Minister of Land, Infrastructure and Transport Byeon Chang-heum, who foretold a landmark housing supply plan in downtown Seoul, is getting heavier.

This is because, as the release date approaches, the market’s curiosity is growing along with anticipation inside and outside the passport, like a masterpiece film that is about to be released.

President Moon Jae-in said at a New Year’s press conference on the 18th that, “I am looking forward to the announcement, beyond the’special measures’ that have been mentioned so far in relation to the housing supply measures to be released next month.” Please wait together.”

The government has taken measures to increase the supply of housing to Seoul by mobilizing not only the 3rd new city, but also the idea of ​​loosening some green belts or converting a hotel into a chartered house, but it has not been able to resolve market unrest, and house prices continue to rise even into the new year.

An apartment complex viewed from the 63 Square Observation Deck, Yeongdeungpo-gu, Seoul on the 18th. [연합뉴스 자료사진]

An apartment complex viewed from the 63 Square Observatory in Yeongdeungpo-gu, Seoul on the 18th. [연합뉴스 자료사진]

◇ Turning from Seoul’s supply to’special supply’

At a New Year’s press conference, President Moon said, “In a way to further increase public participation, strengthen incentives, and significantly shorten the procedure, the market predicts through public redevelopment, development of station areas, and drastic development of new residential areas,” regarding the supply of housing in downtown Seoul. He said, “We will specifically increase the supply to a level far beyond the standard,” he said. “It aims to relieve the public’s anxiety about the shortage of supply at once.”

This is because President Moon said in his New Year’s address on the 11th, “I will not hesitate to prepare necessary measures for housing stability” and “We will put a special emphasis on expanding supply and quickly come up with various housing supply plans that can be effective quickly.” Compared to this, it is more specific and the intensity of speech is high.

Last year, the epicenter of the rise in apartment prices and jeon and monthly rents was Seoul. The sharp rise in prices that started in the Gangnam area moved to Gangbuk, and spread uncontrollably to major cities across the country through the metropolitan area. This trend, which has driven consumers into a panic as the sentiment of supply anxiety overlaps with the overflowing liquidity is still ongoing this year. Therefore, in order to stabilize the market, it is urgent to calm down the prices of houses in Seoul, especially apartment prices that consumers want.

As Deputy Prime Minister Hong Nam-ki mentioned in a recent broadcast talk, there are two types of supply. One is to increase supply through new construction, and the other is to respond to urgent demand for housing by allowing multi-homed people to come up with supplies.

However, the government has nailed down that there is no transfer tax cut desired by the market as a promising way to move multi-homed people. He hit Bae Ji-jin, who blocked the retreat, saying that unacceptable income was unacceptable. If so, the only alternative is to secure new housing sites and reliably increase supply to a level satisfactory to the market. This is probably the reason President Moon mentions’special measures’ whenever he has an opportunity.

The appearance of a multi-family and row house cluster in Songpa-gu, Seoul on the 17th. [연합뉴스 자료사진]

The appearance of a multi-family and row house cluster in Songpa-gu, Seoul on the 17th. [연합뉴스 자료사진]

◇ How much will the quantity burst

As President Moon’s resolute commitment to supply to the Seoul region has been confirmed, some of the mayors are even talking about whether the green belt lift will rise to the surface again, but the view that this is unlikely in view of the government’s policy stance prevails.

First of all, Minister Byeon Chang-heum’s existing plan is to significantly increase the supply of apartments in the city center by providing benefits such as floor area ratio incentives and easing urban regulations through public high-density development led by public institutions in low-density developed areas such as station areas, semi-industrial areas, and low-rise residential areas.

However, there are many experts who are wondering whether it can alleviate the public’s anxiety over the shortage of supply.

Cho Joo-hyun, a professor at Konkuk University’s Department of Real Estate, said, “Now there is little vacant land in downtown Seoul other than the existing private residential areas, so it will be difficult to increase the supply at once.” “There is a limit to public development that does not induce.”

According to Real Estate 114, the number of apartment occupants in Seoul in 2019 and last year was similar at 48,000,813 and 49,32, respectively, but this year it expanded to 29,000,649 and next year, to 23,41. Decreases. From the perspective of consumers, the decline in supply is inevitably unstable.

Fortunately, the pre-sale volume will increase a lot from this year. The number of apartments sold from 28,137 households last year will increase to 41,489 units this year and 45,000,217 units next year. The city of Seoul estimates that an average of 50,000 apartments will be supplied to Seoul for six years from 2020 on average, but the procedure may be delayed due to various factors such as licensing and pre-sale prices.

“It is virtually impossible to fully meet the potential demand for apartments in Seoul because there is so much potential demand for apartments in Seoul,” said Kwon Il, head of Real Estate Information Research Team. I will.”

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