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Vice Premier Hong Nam-ki and Minister of Strategy and Finance (second from right) report the contents of ’11 · 19 Real Estate Measures’ at the Seoul Government Complex on the 19th. Journalist Eun-gu Kang egkang @ hankyung.com
On the 19th, the government unveiled its plan to supply 114,000 jeonse-type housing units by 2022 in the ‘Measures to support the stability of housing for the middle and common class’ (pre-generation plan), and expected that the effect of the countermeasures will take effect next month. The market is already skeptical about the viability of this measure. The following are questions and answers with officials from the Ministry of Lands, Infrastructure and Transportation about this measure.
▷ Is it a realistic figure to supply 144,100 homes for private rental in two years?
“Among these measures, the new construction purchase agreements (private construction of multi-family housing and the purchase of public institutions) and the remodeling of non-residential vacancies are projects that are already underway by LH (Korea Housing and Land Corporation) Seoul Housing and Urban Corporation. It means that we will accelerate the promotion of these projects. Since offering public rental vacancies is a way to utilize existing housing, we believe it will not be difficult to secure the amount. “
▷ Public rental housing that has been unoccupied for more than 3 months is probably aged or poorly located. Will it be possible to ensure a sufficient demand?
“The size of homeless leases nationwide is estimated to be approximately 7.79 million households. The demand is expected to be sufficient. Through green remodeling (a project to improve the insulation, confidentiality and facilities of existing buildings with reduced energy efficiency), the residential environment of old rental houses has been constantly improved. We plan to make it even better. “
▷ How to raise funds?
“We are applying measures based on the principle of balanced financial sharing between the three parties, including financial authorities, LH and residents. LH is expected to be able to offset some of the losses with the profits it makes from the pre-sale home and land development projects. “
▷ There is no plan to expand the offer of apartments. Do you think the conversion of the accommodation facilities will help in the current jeonse crisis?
“Considering the period of construction of the apartments, there are physical limitations for the expansion of the supply in the short term. The recent increase in the number of households is mainly focused on one or two people. We believe that the conversion of accommodation facilities will contribute to solving the jeonse crisis suffered by small-scale households. Accommodation facilities are located mainly in the city center and have the advantage of being similar in structure to residential facilities ”.
▷ The government rental income requirement is generally relaxed. Do you think the government should provide rental housing to the middle class?
“Until now, public rental housing has been recognized as low-income housing and there have been problems such as social disconnection. He is trying to create a complex in which several classes coexist ”.
▷ If the income requirement is relaxed, will the supply volume for the existing low-income class decrease?
“To avoid a decrease in the number of rental housing for low-income families, we will seek a net increase (expand) the supply of rental housing in addition to the average annual average of 70,000 households. Regarding the additional amount, 60% will be provided first to households with less than 100% of the median income (4.74 million won based on four-person households), which is the goal of the permanent lease. and existing national. We plan to introduce a new income standard to the distribution standard, so the lower the income, the higher the score. “
▷ There are many criticisms that the current crisis in jeonse is due to the new law for the protection of housing rental that has been applied since last July. Are you thinking of improving the system?
“It has been three months since the system was implemented and it is too early to discuss improving the system. Several indicators are also confirming positive effects, such as the introduction of the right to request the renewal of the contract and the system of rent limit per month, and the length of the residence period for existing tenants ”.
▷ When do you think the jeonse market will regain stability?
“With this measure, it is possible to supply more than the previous year’s level, and it is expected that a sufficient number of houses will be insured in the face of the recent increase in the number of households. If the hiring of tenants in accordance with this measure starting next month immediately, we believe that a significant part of the anxiety will be resolved ”.
Reporter Jeong Yeon-il [email protected]
