“I can’t trust the government anymore. I can’t believe the results of LH’s land dumping survey and that the 3rd new city will do the same as planned.” (Consumer waiting for pre-subscription for the 3rd new city)
While the Moon Jae-in administration’s construction of the third new town was put on a brake due to suspicion of land speculation by employees of the Korea Land and Housing Corporation (LH), some are concerned that it may be delayed until the pre-subscription schedule for the third new town. The distrust of the government is growing extremely, saying that the pre-subscription-waiting consumers who put their hopes on the 3rd new city are falling into the status of’subscription refugees’.
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“I came in hoping only for the 3rd new city…”
According to related industries on the 7th, the government will begin the pre-subscription schedule starting with Gyeyang (1,100 households) in Incheon in July this year. In September-October, Namyangju Wangsuk 2 (1500 households), Namyangju Wangsuk (2400 households), Hanam Gyosan (1100 households), Goyang Changneung (1600 households), Bucheon Daejang (2000 households). Including it, 30,000 households will be supplied by the end of the year in public housing in the metropolitan area.
However, there are concerns that the supply plan may be entangled, such as delays from the pre-subscription schedule starting in July due to allegations of LH speculation. If land compensation is delayed, the actual occupancy period will inevitably be delayed.
In one real estate online community, “If the third new city is delayed or canceled, what will happen to those who do not want to sign up for the first priority and enter rent for rent?” There are many articles worrying about the supply disruption caused by the LH speculation controversy, such as “I will fall”.
In order to subscribe to the 3rd new city in advance, you must reside in the relevant area at the time of subscription. If you live for more than 1 to 2 years after that, there is a high probability of winning this subscription. In line with this, there were many cases in which consumers waiting for pre-subscription moved to the region from last year. For this reason, the’fire market’ continues to this day, with demand for sale continuing in the chartered market around the planned area of the 3rd new city.
An official from the A-licensed brokerage office near Gyosan District, Hanam said, “In the case of Hanam, the demand for pre-subscription in the third new city pushed up the jeonse price.” He said, “The pre-subscription waiters are not able to subscribe to other places and are paying only the monthly tax. Because of the LH incident, distrust in the government policy is growing, so everyone is confused.”
“Pre-subscription that has been widely promoted, must be done in time”
Apart from the LH controversy, the government plans to promote the existing housing supply measures without a hitch. The Ministry of Land, Infrastructure and Transport said, “Because it is not possible to apply in advance until land compensation is completed, the subscription will be promoted according to the original schedule.” Experts also agree that the schedule of the 3rd new city should be digested in time.
Jihae Yoon, senior researcher at Real Estate 114, said, “The existing 3rd new city is a project that has already passed 2-3 years,” and said, “The government must adhere to this pre-subscription schedule even in terms of reliability.” He added, “If you look at the stakes in the 3rd new city, not only LH but also local governments are included, so it seems that the schedule will focus on digesting the existing schedule.”
According to the status of LH’s 3rd New City Basic Agreement, in the case of Hanam Gyosan, LH, Gyeonggi Housing and Urban Corporation (GH), and Hanam Urban Corporation participate as project implementers. The stakes are LH 65%, GH 30%, and Hanam Pottery 5%. In Gyeyang, Incheon, LH and Incheon City Corporation are joint ventures, with an equity ratio of 80% of LH and 20% of Incheon Potters. In addition, the remaining 3rd new towns are still under discussion.
City and Economy Representative Song Seung-heon said, “The government has been promoting the 3rd new city on a large scale. “People who made pre-subscription housing plans according to the cycle will come out of credibility and come to life as a damage.”