Minister Byeon Chang-heum’s first measures…文 First measures after apology
Higher possibility of’supply’ and’deregulation’ than’regulation’
“Depending on the scale, it may become a new town for the 3.5th-4th term”
A view of the 2nd new town Wirye New Town. The government is expected to introduce additional real estate measures this week. / Photo = Yonhap News
The government plans to announce comprehensive measures to expand housing supply in Seoul and other metropolitan areas as early as this week. The influential date is the coming 4-5 days.
This measure is expected to be the 25th measure for the Moon Jae-in administration. It is the first measure that Minister of Land, Infrastructure and Transport Byun Chang-heum has touched, and President Moon Jae-in is the first to officially apologize for the real estate issue within his term. Moreover, President Moon announced strong measures such as’special measures’ and’solve at once’.
This measure is expected to be’supply’ or’deregulation’ rather than’regulation’. It is known that the plan to add new housing sites to the metropolitan area as well as urban development such as Seoul station area is known to be promising. The market is paying attention to its location and supply, and it is predicted that it could be a 3.5th to 4th new city depending on the scale. In order to quickly increase the supply of Seoul, measures to ease regulations are also being proposed.
Seoul’s housing supply’deregulation’ likely to speed up
According to related industries on the 31st, the Ministry of Land, Infrastructure and Transport is planning to announce real estate measures this week aimed at expanding supply such as public redevelopment, station area development, and new housing sites in Seoul and the metropolitan area. The key is expected to be’quantity’ and’speed’. Until now, the government has come up with various supply measures such as the 5·6 countermeasures and the 8·4 countermeasures, but house prices have maintained an upward trend. This is because the market was not affected because the supply was not immediately available. The plan to be announced this time is being talked about releasing some regulations so that time can be reduced as much as the amount.
President Moon Jae-in delivered an apology in relation to the real estate issue at a New Year’s press conference on the 18th and announced the supply plan before the Lunar New Year. /Photo = Blue House Photo Reporter
The government reaffirmed its position that it will announce measures before the Lunar New Year. President Moon Jae-in also said at a New Year’s press conference that he expects measures to come before the Lunar New Year, and that he will increase the supply. President Moon said, “I will not hesitate to prepare necessary measures for the stability of housing,” and “We will increase the supply specially to a level far exceeding the level expected by the market through drastic development of new residential sites.”
The core of the countermeasure is expected to be high-density development of metropolitan subway stations, semi-industrial areas, and low-rise residential areas in downtown Seoul, as predicted. In order to further expand housing supply, measures to secure new housing sites in the metropolitan area are expected to be included in the measures. As housing sites of small and medium-sized or larger were reviewed, it was reported that the supply could be 3.5 units.
First of all, in the public redevelopment of metropolitan areas such as Seoul and development of station areas, measures to release regulations to reduce the speed of business are being discussed. It is clear how to develop houses in a more dense manner by expanding the range of the station area, which is currently 350m, such as around subway stations, to a radius of 500m, and increasing the floor area ratio of the station area. In this process, public-private cooperation and fast track (rapid processing system) are expected to be applied. Secretary Byeon also made a comment on this.
A real estate agency in downtown Seoul / Photo = Yonhap News
Minister of Land, Infrastructure and Transport Byun said at a meeting with housing supply organizations attended by the Korea Housing Association, the Korea Housing Construction Association, and the Korea Real Estate Development Association on the 5th, “Some people are concerned about the supply of housing and public rental housing. “It should be centered on apartments,” he said. “In order to secure consumers’ choice, it is necessary to mix and supply public self-owned housing and public rental housing in consideration of the location conditions.”
As a supplement to the existing supply plan, a public development model led by public institutions such as Korea Land and Housing Corporation (LH) and Seoul Housing and Urban Corporation (SH) is mentioned. It is a way to increase the housing floor area ratio and boldly release urban regulations such as the right to sunlight and parking lots. Instead, part of the increased area is promoted by receiving donations as rental housing.
Byun Chang-Humpyo’s supply measures’attention’… “Private-public cooperation and fast track adoption”
Repurchase conditional housing and public private housing are also discussed. Providing repurchase conditional housing simplifies administrative procedures and lowers various costs. It is a story inside and outside the industry that public private housing can include financial support measures.
Semi-industrial areas are expected to introduce a circular development method. It is a method of establishing an anchor facility in which residential and industrial functions are mixed on the site before the factory and maintaining and developing the surrounding area. The housing floor area ratio will be higher and the ratio of securing industrial land will be lowered. This method has been steadily mentioned by the government, and it is receiving positive reviews in that it is possible to supply housing to Seoul right away.
The specific location of the new housing site in the metropolitan area is unknown. However, a plan to lift the green belt in an area where the protection value is greatly reduced, which is called the’green house’ zone, is considered promising. The large-scale supply through the lifting of the green belt has been steadily presented as an alternative to the Moon government. Until last year, the government’s position was that the green belt should be lifted carefully. It is also said that these areas are adjacent to Seoul and are large in size, so they could be the 3.5th to 4th new cities.
The Gwangmyeong and Siheung districts, Goyang-si area, and Gimpo Gochon, which are mentioned whenever a supply measure comes out, are emerging again. Among them, the Gwangmyeong and Siheung districts are 17.4 million square meters in size, enough to build 100,000 households. As the metropolitan area is equipped with a GTX (Metropolitan Express Railroad) network, the surrounding areas of the reserve station are also talking. If information on new housing sites is leaked in advance, it is subject to criminal penalties.
On the 15th, the Ministry of Land, Infrastructure and Transport and the Seoul Metropolitan Government announced on the 15th that they will promote 8 redevelopment sites as candidates for the public redevelopment pilot project. However, Heukseok District 2, Dongjak-gu, Seoul, announced its intention to give up. The picture is a view of Heukseok District 2. / Source = Hankyung DB
It is unclear whether the countermeasures will work. Some believe that the government’s announcement is difficult to calm the market overheating. Even from the beginning of the year when the supply plan was announced, house prices by region have been recording the reported price. The areas proposed as countermeasures are not being promoted as planned. Earlier on the 15th, it was announced on the 15th that the’Heukseok District 2′, which is considered the most unfavorable among the candidate sites for public redevelopment projects in downtown Seoul, was virtually abandoning, saying it could not secure its business potential.
There is also a story in Seoul that’everyone to buy has bought it’. Last year, the volume of housing transactions reached 1.27 million, a record high. In Seoul, the cost of an apartment with an exclusive area of 84㎡ exceeded KRW 1 billion in all 25 districts. There are also opinions that’panic buying (panic buying)’ was completed by last year in a situation where the lending road was blocked. In fact, the volume of apartment transactions in Seoul decreased slightly this month, and loans also decreased.
Hankyung.com reporter Kim Hana [email protected]