Land Minister Byeon Chang-heum speaks at a briefing on Thursday at Seoul government complex in Jongno as he lays out the 25th real estate policy under the Moon Jae-in administration focusing on drastically expanding new house supply. [Photo by Joint Press Corps]
South Korea on Thursday unveiled an ambitious state-led housing supply plan to boost new housing of 836,000 units in major cities, with 616,000 centered in the capital region over the next four years to address dire shortage that has led to panicky buying spree and runaway prices.
Under the latest real estate package, the 25th under the Moon Jae-in administration, the government will build 836,000 new housing - 320,000 units in Seoul and 293,000 units in Incheon and Gyeonggi regions, by 2025.
Public developers such as Korea Land & Housing Corporation and Seoul Housing & Communities Corporation will directly carry out public redevelopment and reconstruction projects.
The measures also include raising the floor area ratio of low-rise buildings in station districts to up to 700 percent and semi-industrial districts to 500 percent.
“When the project is carried out as planned, housing supply will exceed market expectations in scale, speed and quality,” said Byeon Chang-heum, land, infrastructure and transport. “We will also improve the overall housing subscription system to provide more opportunities to not only the newly-weds but also non-homeowners in their 30s and 40s to buy their first homes.”
The latest real estate policy is the first measure by Byeon, former head of LH, who succeeded former land minister Kim Hyun-mee.
Real estate policies set out under the Moon administration have been blamed for triggering housing prices to soar even higher. They focused on tightening loan regulations and levying heavier taxation on multiple homeowners.
[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]