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The government is coordinating plans to announce a pregeneration plan this week. It is a plan to alleviate the jeonse crisis by increasing the amount of public leasing that can be provided for the first quarter of next year, mainly in the metropolitan area.
According to relevant ministries such as the Ministry of Land, Infrastructure and Transport on the 15th, the government decided to hold a meeting of related ministers on the 18th to inspect the real estate market chaired by Hong Nam-ki, Deputy Prime Minister and Minister of Strategy and Finance. The government also plans to announce its countermeasures for jeonse on this day. Initially last week, the company decided to announce a measure to provide short-term rentals to thousands of homes, but it is known to have been postponed based on an internal judgment that ‘it is not enough to alleviate the jeonse crisis’.
The government is reportedly considering increasing the supply of short-term public rental housing to tens of thousands of households. It is an amount that far exceeds the level of thousands of households originally expected. The supply period is building up intensively until the first quarter of next year at the latest. This is because the jeonse crisis can be resolved by increasing short-term supply as much as possible.
Currently, the existing housing contract purchase and lease method, in which the government buys or rents houses that are vacant and resells them as jeonse, is influential. Single-family homes and apartments are highly likely to be bought or rented, primarily for multi-family and multi-family homes in the metropolitan area. It is also looking for ways to supply rental housing by making shopping centers and offices residential.
It is a public lease agreement run by public institutions such as Korea Land and Housing Corporation (LH) and Seoul Housing and Urban Corporation (SH).
Minister Kim Hyun-mi told the Preliminary Committee of the National Assembly on the 9th, when asking whether the leases of jeonse by public institutions such as LH and SH are influential as a countermeasure related to the crisis of the cheonsei, “The lease de jeonse has already been budgeted for by the government and LH has sufficient funds to do so. It does”.
The government also plans to announce a plan to supply ‘high-quality mid-size public rental apartments’ later this month. It is a public rental housing that has increased the public rental area from 60 from to 85㎡.
The government believes that this pre-generation policy is not contrary to existing policies, such as commercial market stabilization and the Third Leasing Law. Further intervention in the market will also be avoided as much as possible. Vice Premier Hong said in the Preliminary Committee of the National Assembly on the 10th: “Is it not necessary to consider introducing the upper limit system for jeonse?” “Limiting the market price to the lower and upper limit system has several side effects, so you need to be careful.”
On the other hand, the high march of jeonse price nationwide has continued for almost three months. In particular, the price of apartment rentals in Seoul rose 1.45%, reaching 7 times the rate of increase in sales (0.21%). This is because the shortage of jeonse has intensified after the implementation of the new leasing law and the price of jeonse has become very unstable. Since jeonse is a 100% real demand, there is concern that the stability of ordinary people’s housing will be threatened by a rise in jeonse prices.
Reporter Bae Jeong-cheol [email protected]
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