The whole area of an urban apartment as seen from Namsan Seoul Tower in Jung-gu, Seoul on the 4th. News 1
The government has declared an offensive on housing supply, providing a total of 830,000 households nationwide, including 320,000 households in Seoul. It is the Moon Jae-in administration’s last fight to capture the ugly “real estate public sentiment”.
The government will significantly increase the floor area ratio so that high-rise apartments can be built that will change the existing skyline of the station area and low-rise residential areas. In the maintenance project led by the public, a’carrot’ was also offered, which exempts the excess profits from reconstruction and the obligation to live for two years.
Although the market is initially opposed to the supply policy, which has been oriented in the past, there is still a factor of uncertainty that the goal is only possible when private participation is prerequisite.
On the 4th, the government announced a plan to expand the supply of housing in the metropolitan area with 3080+ for public guidance. By 2025, a total of 836,000 houses will be secured in the metropolitan area and five metropolitan cities including Seoul.
This is twice the amount of annual national housing supply. The government’s explanation is that the Moon Jae-in administration will supply 2.16,000 households, the highest level in the past, with 1.27 million households already being promoted through the third new city.
In Seoul, an additional 323,000 households, equivalent to the number of apartments in’Gangnam 3 districts’ (Gangnam, Seocho, Songpa-gu), will be supplied. It is the size of three Bunner cities. Incheon and Gyeonggi have 293,000 households, and the supply of 5 metropolitan cities including Busan is 220,000 households.
The government plans to release 70-80% of the housing supplied in the form of pre-sale. The subscription system has also been reorganized to provide homes for 30 and 40 homeless households, and up to 30% of the general supply is turned into a lottery system.
Instead, the public takes the initiative in supply. The’city center public housing complex project’, which will be operated temporarily for three years, is a method of securing and developing a site by public institutions such as Korea Land and Housing Corporation (LH) and Seoul City Housing Corporation (SH) when proposed by land owners, private companies, and local governments. . This includes the high-density development of urban station areas, low-rise residential areas, and semi-industrial areas, which the Minister of Land, Infrastructure and Transport Byeon Chang-heum professed before taking office. The station area is a quasi-residential area, and if the maximum legal upper limit is applied after the vertical increase, the floor area ratio will rise to 700%, and a 50-story residential complex can be built.
In the case of a’public direct implementation maintenance project’, the obligation to reside for two years as a member of the reconstruction union and the surcharge for profits in excess of reconstruction are not applied. The government explained that the existing maintenance project period, which took an average of 13 years, can be shortened to less than 5 years by coordinating various interests of LH and SH and proceeding promptly.
In the case of public-led projects, the government has announced that it will guarantee a 10 to 30 percentage point higher rate of return compared to the existing promotion method. Park Won-gap, a senior real estate expert at KB Kookmin Bank, said, “If the burden of excess profits from reconstruction, which has been a stumbling block, is waived, it will open the door for reconstruction.
In regions facing redevelopment, expectations are growing. Jeong-ja Oh, chairman of the Redevelopment Promotion Committee in Huam District 1, Yongsan-gu, Seoul, included in the candidate for high-density development in the station area, said, “This is a place that has been making development efforts for a long time, so the public is greatly welcomed by the public implementation.”
Target housing supply in 2025
However, the quantity announced by the government is based on the site calculated to be secured by 2025. The actual move-in is three years after securing the site. In addition, public-led projects that account for more than half of the total supply can be realized only when owners, such as land, participate.
An official from the Ministry of Land, Infrastructure and Transport said, “There is no more land in Seoul where large-scale housing can be built right away.”
Gangjin-gu reporter [email protected]
Kim Ji-seop reporter [email protected]
News directly edited by the Hankook Ilbo is also available on Naver.
