[7.10 Real Estate Measures] Formation of Housing Supply Expansion TF... Review of Floor Area Ratio Increase in 3rd New Towns, etc.

[Image source=Yonhap News]

[Sejong=Asia Economy Reporter Kim Hyunjung] The government is forming a task force (TF) team chaired by Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki to stabilize the real estate market by expanding housing supply. The TF team plans to review measures to increase supply for actual demand, including raising the floor area ratio of the 3rd phase new towns.

On the 10th, the government, through a joint effort of related ministries such as the Ministry of Economy and Finance and the Ministry of Land, Infrastructure and Transport, announced a housing market stabilization management plan containing these details. This is the 22nd measure since the Moon Jae-in administration, following up on the June 17 real estate measures.

First, the TF meeting to expand housing supply, involving ministers of related ministries and local governments, will be held under the chairmanship of the Deputy Prime Minister. The Ministry of Land, Infrastructure and Transport will form a practical planning group for housing supply expansion (headed by the 1st Vice Minister) to prepare detailed supply plans and regularly announce progress.

Currently, possible alternatives under review include raising the floor area ratio of the 3rd phase new towns and improving urban planning regulations for high-density development in city centers.

Along with this, the government stated that it will additionally identify new housing sites such as idle land around cities and sites of national facilities within cities, and also consider easing urban regulations for public redevelopment and reconstruction projects. Furthermore, it is exploring ways to supply public rental and sale apartments for youth and newlyweds, and to utilize vacant commercial spaces and offices within city centers.