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“We will prepare and announce specific plans to provide enough affordable and quality housing in the city, before the New Year holidays next year.”
New Minister of Land, Infrastructure and Transport Byun Chang-heum (pictured) said at the inauguration ceremony held online on the 29th, “We need to focus our policy capacity on preparing concrete action plans to relieve the anxiety in the housing market early and achieve stable housing for the common people.” The current government’s 25th real estate measure, which focuses on expanding the supply of urban housing, is expected to come out soon.
The core of the supply policy for Byeon Chang-Humpyo is expected to be’urban high-density development’. The plan is to attempt high-density development centering on the station area, semi-industrial areas, and low-rise residential areas. Previously, Minister Byeon suggested that the range of the station area can be expanded to a radius of 500m and the floor area ratio can be increased to 300%. Minister Byeon emphasized, “If we effectively utilize the low-density developed station area, semi-industrial areas, and low-rise residential areas in downtown Seoul, we can supply sufficient housing in downtown Seoul.”
The public-led supply method based on the premise of redemption of development profits is expected to remain. This means that LH (Korea Land and Housing Corporation) should participate to ensure publicity. It is highly likely that the current government’s real estate regulations will be maintained, such as strengthening the multi-homed ownership tax (property tax + comprehensive real estate tax). Minister Byeon said, “We will come up with measures to block side effects that may occur during the development process. We will block excessive speculative demand and establish a system that shares development profits so that the supply will return to end users.”
It also revealed a plan to provide a’living house’. Minister Byeon said, “We must pay attention to the improvement of the quality of existing housing while promoting the supply plan, such as the supply of housing in the third new city and the Seoul area,” he said.
They also suggested that the launch of the Real Estate Transaction Analysis Institute should be hurried. Minister Byeon said, “We will quickly launch the Real Estate Transaction Analysis Institute to eradicate illegal activities that may confuse the market. We plan to strengthen on-site inspection and crackdown in cooperation with the National Tax Service and local governments.”
It also suggested a plan to supply housing to the public in the 3rd new town. In order to supply houses at half the price of the market price, it is expected to conduct various experiments such as land lease and buy-back conditional housing. The main task was to solve the jeonse problem that has not been caught since the introduction of the new lease protection law, such as the contract renewal request system and the upper limit on rent and rent. In order to overcome the jeonse crisis, it is expected to focus on carrying out the ’11·19 real estate measures’ to provide 114,000 households for public lease without a hitch.
Reporter Jang Hyun-joo [email protected]
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