According to the Ministry of Land, Infrastructure and Transport on the 1st, the government is conducting discussions between relevant ministries regarding details to be included in the 25th housing supply plan. An official from the Ministry of Land, Infrastructure and Transport explained, “This measure is focused on developing areas such as station areas, semi-industrial areas, and low-rise residential areas,” and said, “We will find the cause of the existing development method not working properly and take measures to improve it.” The plan is to allow a floor area ratio of up to 700% for residential-commercial complexes in the station area, and to provide housing for end users by promoting recycling of semi-industrial areas and converting the use of residential land. With this announcement, there are many prospects that 200,000-300,000 units, including public lease and sale, will be released.
Some have made observations such as re-inviting and easing the re-initiation system to revitalize public reconstruction, which is less popular than public redevelopment, and creating a’fourth new city’ near Seoul, but the government drew a line. An official from the government said, “We are not reviewing the easing of the re-invitation application to redeem half of the reconstruction profit and the application of the exemption from the installment system.
However, the industry agrees that only when additional deregulation measures are taken for maintenance projects can give a clear signal of a shift in supply posture. Kim Seong-hwan, a researcher at the Korea Institute of Construction Industry, said, “It is difficult to remove the regulation on private reconstruction projects based on the government’s stance, but if the regulations on the re-initiation and break-up system are released only for public reconstruction, supply to areas that people want, such as the Gangnam area, will be breathless. He said, “It is only when the government takes a step back to show the willingness of supply more clearly.”
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