Byun Chang-heum “Public reconstruction, a conglomerate brand inexpensively…to lower the house price”

Minister of Land, Infrastructure and Transport Byun Chang-heum answers the reporters’ questions at the’Public-led 3080+ metropolitan area housing supply remarkable expansion plan briefing’ held in the auditorium of the government building annex on the morning of the 4th. yunhap news

Minister of Land, Infrastructure and Transport Byun Chang-heum emphasized that the quality and brand of large corporations can be built at a lower cost than the private sector through public-led reconstruction projects.

He also predicted that if the supply of high-quality and affordable housing expands through the February 4 supply measure on the 10th, it could go beyond stabilizing the skyrocketing house prices and lower the current level.

Minister Byun appeared on the 10th’KBS1 Radio Hong Sa-Hoon’s Economic Show’ and asked,’Doesn’t it mean that public institutions will provide housing beyond stabilizing the house price?’ “We will show that we can do it so that we will prevent the increase in house prices due to anxiety. If we continue to supply affordable housing, it will be possible to fall.”

Minister Byun added, “Even if the private sector supplies a lot of houses, it is difficult to expect stable house prices if the initial sale price is too high.”

Regarding the point that the quality of apartments may be lower than that of private reconstruction, “The public-led reconstruction, redevelopment, etc. It becomes a contractor,” he explained, “thereby, large construction companies such as Hyundai E&C can supply and sell apartments with their own brand and quality.”

Minister Byun analyzed that “in the case of a private reconstruction association, even if the contractor insisted on an increase in cost during construction, it has been accepted if the contractor received a high pre-sale price,” he said. “This has caused the reconstruction complex to cause unstable apartment prices.” .

In addition, he argued, “The public-led reconstruction introduced in the 2nd and 4th supply measures is a structure that can filter out construction cost bubbles because the subject of signing a contract with a contractor is a public corporation such as LH, a veteran of public works.”

Minister of Land, Infrastructure and Transport Byun Chang-heum speaks at a briefing session on plans to expand housing supply for’Public Gong-do 3080+’ held at the Government Complex Sejong on the 10th. The meeting was held with a video conference with the Seoul Mayor’s Council. [국토교통부 제공. 재판매 및 DB 금지] yunhap news

Public corporations, which are construction entities, can return all the profits of the reconstruction project to residents and land owners, and can significantly reduce unnecessary intermediate margins for large construction companies, which in turn can supply affordable but high-quality apartments.

“In the case of reconstruction and redevelopment, it is divided into a private maintenance project, a public maintenance project announced last year in the 8·4 supply plan, and a public-led maintenance project announced this time. Residents and landlords can choose the project they want.” When a reconstruction complex or the like is a private business, if the profit is 120% from the two-year housing and the reconstruction excess profit redemption system, public-led reconstruction is more profitable as it guarantees up to 30% profit here.” .

Minister Byeon also said that public-led reconstruction could recover the overestimated costs of private reconstruction projects if high-quality apartments can be built at low prices.

In addition, when asked about the cases where LH-supplied apartments were filled with garbage and closed, Minister Byun said, “LH has played the role of a project supervising project, and the actual construction is done by private companies.” “There are some problems that have occurred while supervising the construction, but I don’t think there is a big deviation compared to the number of defects of private companies,” he said.