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To solve the jeonse crisis, the government decided to supply 114,000 homes for public rental by 2022 using public rental housing, multi-family / alignments, shopping centers, and hotels. On the 19th, when the ‘11.19 real estate countermeasures’ were announced, a message criticizing the government’s policy was published in a Seoul brokerage. / Reporter Shin Kyung-hoon [email protected]
After the enforcement of new lease protection laws such as the contract renewal application system and the monthly rent ceiling system in late July, the cheonsei crisis spread out of control across the country and surged the government’s 24th real estate measures. It means that it will provide public leases by “ soul collecting ”, but it is pointed out that the amount is not enough.
On the 19th, the Ministry of Strategy and Finance and the Ministry of Lands, Infrastructure and Transportation announced a ‘pre-generation plan (11.19 real estate countermeasures)’ that provides public leases for 114,000 homes across the country by 2022 in the office building of the government in Seoul.
By the first half of next year, it plans to supply 49,000 homes across the country, including 24,500 homes in the metropolitan area, to extinguish the rise of the jeonse crisis. To this end, it was decided to introduce a new “public charter” using public rent, which is vacant. The hiring period for public rental tenants is also as early as possible. Conversion to public lease of commercial office facilities.
Real estate experts, however, argue that there is a limit to increasing supply only while keeping the lease protection law, which is the main cause of the jeonse crisis. First of all, the amount itself is insufficient. According to Asil, a real estate big data company, apartment rental sales in Seoul fell 25,125 (66.2%) from 38,427 on July 31, when the new lease protection law was enforced, to 13,005 that day. In the metropolitan area, 42,231 cases (58.4%) disappeared from 75,013 cases to 32.82 cases.
For the first half of next year, only 8,900 households in Seoul and 24,200 households in the metropolitan area were supplied according to this measure. Also, most public rentals are not apartments, but villa offices. Lee Chang-moo, a professor in the Department of Urban Engineering at Hanyang University, said: “I wonder how much demand there will be to live in shopping malls and hotels that have been converted to public leases. It is impossible to propose effective measures without changing the Law of Lease Protection “.
The Ministry of Land, Infrastructure and Transportation held the Housing Policy Deliberation Committee that day and designated Haeundae, Suyeong, Dongnae, Yeonje, Nam-gu, Daegu Suseong-gu and Gimpo-si in Gyeonggi as target areas for adjustment. . These regions, where apartment prices have soared recently, are subject to regulations such as reduced loans and a hefty transfer tax for multiple owners.
Ministry of Land, Infrastructure and Transport Minister of Land, Infrastructure and Transport Kim Hyun-mi (right) announced on the 19th at the Seoul Government Complex that he will provide a plan to supply 49,000 privately owned houses across the country to the first half of next year. You are doing. / Reporter Kang Eun-gu [email protected]
Said to supply 114,000 licensed housing units … Hotel and multi-family rentals mean ‘hassle’
“This measure is expected to solve the supply shortage.”
Vice Premier Hong Nam-ki and the Minister of Strategy and Finance were confident in this way at a meeting of ministers concerned about the inspection of the housing market on the 19th. Minister of Lands, Infrastructure and Transport, Kim Hyun-mi, he also said the day that “we will be able to experience the results of the resupply early.
However, real estate experts point out that “this countermeasure also took the number of streets badly.” The new lease protection law, like the right to request contract renewal, is extinguishing apartment rental sales, as one countermeasure was to supply multi-family and coalitions (villas) as public leases. There were even plans to use shopping centers and offices as public leases. The content of private leases that were cut due to the abolition of the rental business was also omitted. As he did not consider the situation of the rental market at all, he questioned whether there would be demand.
Supplied ‘Youngcle’ to shopping centers and hotels in the center of villas
The main objective of the government’s plan on this day is to supply 114,000 homes (72,000 units in the metropolitan area) throughout the country by 2022. Among them, 28,890 apartments are the most preferred. Seoul’s apartments are just 1952 homes. For the first half of next year, it plans to supply 49,000 homes (24,500 homes in the metropolitan area), more than 40% of the total supply.
Most of these are public rental homes (39,000 homes) from LH (Korea Land and Housing Corporation), which remain vacant for more than three months. However, the vacancy is basically the amount that is left unattended because there are no consumers. Since it is a place with little marketability, such as location, it is very likely to be neglected even if it becomes a public letter. Even so, most of the 23,000 households supply the provinces. It is analyzed that it is not enough to satisfy the demand for jeonse in the metropolitan area including Seoul.
The Ministry of Lands, Infrastructure and Transport decided to introduce a new public letter this time. It plans to supply 18,000 homes across the country by 2022. The volume of the metropolitan area is 13,000 homes, including 5,000 homes in Seoul. Existing purchase rentals and public support private rentals were provided by monthly rental, but in the future, they will also be provided by jeonse.
It also plans to expand the way LH purchases office and multifamily homes through purchase agreements with private construction companies. It plans to supply 44,000 homes nationwide with new public leases by 2022. 21,000 homes next year and 23,000 homes in 2022. By 2022, 13,000 homes will be supplied nationwide by remodeling lodging facilities, such as shopping malls, empty offices and hotels.
In addition, to increase the preference for public rental, it also decided to introduce mid-size rental. However, it is noted that there is a limitation that it is not the most difficult number of apartments in the recent rental market.
“It would be useless if we don’t change the Lease Protection Law”
Experts agreed that it would be difficult for the market to respond to this measure, saying, “It’s just an edge that can’t solve the apartment rental crisis.” “The key to solving the housing shortage is to provide housing where people want to live,” said Lee Chang-moo, a professor in the Department of Urban Engineering at Hanyang University. Indicated.
There were many prospects that the newly introduced public jeonse would not be of much help in solving the cheonsei crisis, even if 18,000 households are supplied nationwide by 2022. The key to the current jeonse crisis is that there is a shortage of apartments which can accommodate 3-4 people, but you are only increasing the wrong offer. The end user who could not find an apartment rental would buy a house or rent an apartment.
Professor Kwon Dae-jung from the Department of Real Estate at Myongji University also said: “In the case of permanent rental and public rental housing with vacancies, there is a high possibility that they will be reluctant to move even if the environment surrounding area is deficient and provides them to the homeless. “
Regarding the hotel remodeling plan, etc., it was a negative reaction, saying: “There are already cases of failures.” In December last year, the Benikea Hotel in Jongno, Seoul, was converted into a youth home, recruiting tenants, but it remains vacant until now. Professor Kwon noted: “If you renovate a hotel, it is more difficult to live than a standard one-bedroom, and you have to pay a high maintenance fee in addition to the monthly rent.”
Shim Gyo-eon, a professor in Konkuk University’s real estate department, was concerned that LH’s government and finances would be seriously damaged by this move. Professor Shim explained that “public rent is often vacant because there is no demand in the market and it will be difficult to find tenants unless the price is very low,” he explained. “The price cut means a financial burden.”
Professor Shim emphasized that “the current cheonsei crisis has occurred because the Lease Protection Act has wiped out the supply of jeonse.”
Reporter Jinseok Choi / Hyunjoo Jang [email protected]
