"If the Real Estate Market Becomes Unstable, Extraordinary Measures Will Be Taken Anytime"
The government is introducing a public reconstruction system as part of expanding supply to stabilize the real estate market, and will significantly relax floor area ratio and height restrictions for reconstruction apartments in Seoul. Alongside this, land development will be pursued, including the site of Taereung Golf Course in Nowon-gu, Seoul, aiming to supply a total of 132,000 new housing units. The photo shows the reconstruction complexes of Miseong Clover and Jinju Apartments in Sincheon-dong, viewed from Lotte World Tower in Songpa-gu, Seoul on the 4th. Photo by Moon Honam munonam@
[Asia Economy Reporter Moon Hyewon] Kim Yongbeom, the 1st Vice Minister of the Ministry of Economy and Finance, stated on the 4th regarding the 'Real Estate 3 Acts' that passed the National Assembly plenary session, "From now on, the focus will be on implementing the policies."
Vice Minister Kim appeared on YTN's 'Evening News' that afternoon and said, "A strong system has been established in terms of real estate demand and supply."
He said, "Since there is a plan to supply housing in highly preferred areas, I believe the real estate market will stabilize as the housing 'panic buying' phenomenon calms down," but added, "If there is market instability, we will always devise special measures from the demand and supply perspectives."
Regarding the criticism that the Taereung Golf Course was developed into residential land instead of releasing the greenbelt in Gangnam, Seoul, he said, "There have been many new residential sites in Gangnam over the past 20 years, but Gangbuk did not have such opportunities." He added, "The lake within the Taereung Golf Course site will be preserved as green space, and we will firmly establish transportation measures such as increasing the frequency of Gyeongchun Line train operations and widening roads."
Vice Minister Kim also said, "Since the Seoul Regional Public Procurement Service and the Korea National Diplomatic Academy sites in Gangnam are preferred areas, we are considering supplying rental housing for first-time homebuyers and youth. Although the ratio has not been decided, rental housing will be supplied as a priority." He added, "Even if sales are made, they will be supplied mainly to people who can actually reside there to prevent side effects of people seeking speculative gains coming and going."
When asked whether reconstruction associations would agree to public-participation high-density reconstruction, he explained, "Even if it is public-type, private construction companies will participate, and the apartment brand can be decided autonomously. The apartment name will not include 'LH'."
He said, "There will definitely be a successful case and a good precedent," adding, "There will be symbolism as high-rise apartments, and the procedures that usually take 20 years will be greatly shortened if it is public-type."
Regarding criticism that Seoul City and the government are discordant over the public-participation high-density reconstruction issue, he rebutted, "Seoul City also agreed to this method," and added, "Seoul City seems worried about whether there will be much participation from association members if the donation ratio is raised and there is an obligation to supply rental housing for each project site."
He also said, "Since apartment jeonse (long-term lease) is an old system in Korea, it will not change overnight," and added, "We do not see jeonse disappearing uniformly, and managing so that apartment supply does not concentrate in a specific period is important for stabilizing jeonse prices."
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