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▲ The government will propose measures to supply housing on a large scale on the 4th. This measure focuses on stabilizing the housing market by expanding the housing supply in Seoul and metropolitan areas, as well as in major metropolitan areas. View of Seoul apartment complexes from 63 Square, Yeongdeungpo-gu, Seoul. Reporter Go Iran photoeran @ (E Today DB)
On the 4th, the government proposed measures to supply housing on a large scale. It is the 25th real estate countermeasure of the Moon Jae-in administration, and the first work published after the inauguration of Minister Byeon Chang-heum of the Ministry of Land, Infrastructure and Transport. This measure is focused on stabilizing the housing market by expanding the housing supply in Seoul and the metropolitan areas, as well as in the main metropolitan areas.
Unlike his predecessor, who focused on suppressing demand, Minister Byun reflected his willingness to stabilize the housing market by expanding supply immediately after taking office. President Moon Jae-in also empowered Minister Byun by mentioning “special supply measures” at a New Year’s press conference last month. The government is known to be considering expanding the housing supply not only to the metropolitan area but also to local cities such as Busan and Daegu.
Consequently, it is observed that a revolutionary measure will come out that will supply up to 300,000 units in Seoul alone and more than 500,000 units in large cities across the country.
This countermeasure is expected to include plans to add high-density urban development and new housing sites in addition to the policy directions so far. Minister Byeon has repeatedly expressed his belief that the urban housing supply should be expanded through the development of low-rise residential areas, semi-industrial areas, and high-density station areas.
Such a policy initiative is very likely to proceed as a public participatory maintenance project that the government has been promoting so far, not as private initiatives. This is because there is a strong atmosphere in the government and care must be taken with private sector led development and the resulting overheating of the housing market. In this context, the government is expected to impose the condition that existing redevelopment and redevelopment complexes will partially ease regulations, such as raising the acreage index, but will recoup development gains. The Ministry of Land, Infrastructure and Transportation is also fighting to develop public housing sites outside the metropolitan area or relocate them to public institutions.
Among the cards the government is playing with are a number of policies that have mixed pros and cons. The vice chairman of the Democratic Party Policy Committee earlier this month said: “If a certain level of consent is obtained, the law can be changed to allow (the government) to accept the rest of the territory.” The aim is to overcome the opposition of some owners by preventing the securing of housing land. In the real estate market, we are concerned that this initiative could lead to a debate on property infringement.
The offer of “own public housing”, which is the opinion of Minister Byeon, is also unclear. In the case of private public housing, home ownership is transferred to the private sector, but a capital gains recovery system is envisaged. Rental housing (homes in which only buildings are sold and land ownership is owned by the public), homes with redemption conditions (homes with redemption conditions to public institutions at the time of the move) belong to the dwelling public private. Privately owned public housing has the advantage of being able to supply affordable housing, but it also has the problem that it is difficult for owners to fully secure property rights.
Seo Jin-hyung, President of the Korea Real Estate Association (Professor at Kyungin Women’s University), said: “If you supply houses through public initiative, you cannot promote the (supply) market. The government focuses In protecting the underprivileged and the housing supply is left to the private sector. “I need this.”
