The government announced that it would supply 236,000 housing units by 2029, centered on the ‘3rd new city’.
In order to stabilize the rental market, at least 10,000 more public rental housing units will be supplied at lower prices than the original plan of 120,000 units.
Deputy Prime Minister and Minister of Strategy and Finance Choi Sang-mok held the 7th Real Estate Ministerial Meeting, the first in 10 months since September of last year, at the Government Complex Seoul on the afternoon of the 18th, with the attendance of Minister of Land, Infrastructure and Transport Park Sang-woo, Director of the Office for Government Policy Coordination Bang Ki-sun, and others, and discussed real estate measures of this nature.
Deputy Prime Minister Choi said in his opening statement, “Recently, the real estate market has shown increasing volatility, with prices rising particularly in some apartments in Seoul and the metropolitan area,” adding, “The prices of local and non-apartment housing are falling, showing differentiation by region and housing type, so the overall market is not overheating.”
However, he explained, “The upward trend is gradually spreading, centered around Seoul and the metropolitan area, so the government is taking the current situation very seriously and is further strengthening monitoring.”
The government reaffirmed its policy direction to increase housing supply to ensure that young people and the homeless can feel secure.
In response to the rising real estate prices, the plan is to sell 236,000 units at significantly lower prices than the market price by 2029, focusing on three new cities with excellent transportation and living conditions: Incheon Gyeyang, Bucheon Daejang, and Goyang Changneung.
In addition, it was decided to supply at least 20,000 new housing units in the metropolitan area and at least 10,000 public rental housing units in the second half of this year by lifting the greenbelt.
In particular, among the public rental housing units that have grown to over 130,000 due to increased supply, 54,000 of them will be concentrated in the metropolitan area.
In addition, it was decided to induce an increase in private supply by expanding the scope of small houses recognized as non-homeowners when applying for housing subscription and providing tax support for the purchase of newly built small apartments.
Regarding real estate finance measures, it was decided to strengthen monitoring of housing mortgage loans in general and, if necessary, to devise measures to strengthen soundness regulations.
The plan to smoothly implement the ‘Stage 2 Stress Total Debt Service Ratio’ (DSR) scheduled for September was also reaffirmed.
Deputy Prime Minister Choi emphasized, “We will thoroughly manage the rise in housing prices so that they do not lead to speculative demand,” and “We will operate a joint on-site inspection team centered around the Ministry of Land, Infrastructure and Transport to crack down on market disruption, severely punish illegal activities, and collect tax evasion.”
Vice Prime Minister Choi also said, “If market overheating occurs despite these measures, we will take special measures.”
In order to check the swift implementation of this measure, the government decided to operate a weekly ‘Real Estate Market and Supply Status Inspection Task Force’ (TF) at the vice-ministerial level of relevant ministries and announce additional housing supply expansion measures by August.
Source: www.nextdaily.co.kr
