Announced’Public-led 3080 Plus, a plan to dramatically expand housing supply in metropolitan areas’
Deputy Prime Minister Hong Nam-ki (left) and Minister of Land, Infrastructure and Transport, Byun Chang-heum, are talking in the morning of the 4th at the auditorium in the annex of the Seoul Government Complex after announcing a plan to dramatically expand the supply of housing in the metropolitan area. yunhap news
Hong Nam-ki, Deputy Prime Minister of Economy and Ministry of Strategy and Finance, said on the 4th that “The core content of this plan to expand housing supply is to supply a total of 830,000 houses by 2025, centering on the metropolitan area and five metropolitan cities.”
On the same day, Deputy Prime Minister Hong announced at the government building in Seoul, “Public-led 3080 Plus, a plan to radically expand the supply of housing in metropolitan areas” and said this.
Deputy Prime Minister Hong said, “The government decided that it is necessary to pursue a’special supply plan’ that exceeds the market’s expectations in order to completely dispel the concerns over the housing supply and to ensure stability in the housing market. We prepared and announced it.”
This measure included a quick revision of laws and regulations for the new supply system, reducing the time required for relocation to half compared to the existing supply method (e.g., more than 10 years of reconstruction → less than 5 years).
Deputy Prime Minister Hong said, “The development profits generated in the housing supply process will be utilized not only for the expansion of infrastructure, but also for the protection of tenants and small merchants who may be marginalized in the process of business so that they can be shared with the public.” 830,000 units amount to about twice the annual national housing supply, and the 320,000 units to be supplied to Seoul are also at the level of a’supply shock’ that amounts to 10% of the city’s housing stock.”
He said, “I am confident that such an enormous level of housing supply expansion will lead to a firm stability in the housing market.”
Deputy Prime Minister Hong predicted, “However, since it may take some time for the people to experience the pre-sale and move-in, there will be no potential for temporary market unrest after the announcement of the measures.”
He said, “We plan to preemptively prevent speculative transactions, such as designating areas with permission for land transactions in areas with signs of market instability, and if additional measures are needed, we will immediately announce by adding prepared high-intensity market stabilization measures. “He said.
Deputy Prime Minister Hong said, “The government has been working hard to stabilize the housing market by expanding the base of housing supply such as the creation of the third new city, the discovery of new housing sites in the metropolitan area, and pre-generation measures in parallel with speculation suppression measures in terms of tax and loans.” “However, we regret the fact that the real estate market has not been settled reliably due to various factors such as market supply and demand uncertainty, market liquidity, and demographic changes, and I feel very sad.”
He added that “the stability of the real estate market is not only important in terms of the stability of the asset market, but it is also the top priority that must be achieved for housing welfare, income equality, work motivation, social stability, etc.” .
Deputy Prime Minister Hong said, “Based on the determined will of the government, close cooperation with local governments, and active participation of public institutions, we will strongly implement this measure to ensure that the housing market is stable and the welfare of the people is realized.” We ask that you believe in the strong will of the government to supply enough’ and make serious judgments on the market situation and participation in the market.