Government's 'Support Plan for Housing Stability of Low-Income and Middle-Class'... 114,000 Households to be Supplied Nationwide
Hotels and Commercial Buildings to be Remodeled for Housing Supply
[Asia Economy Reporter Jang Sehee]"All public officials should try living in remodeled second-floor commercial spaces"
Although the government announced the 'Support Measures for Housing Stability of Low-Income and Middle-Class' on the 19th, public opinion was lukewarm. In particular, there are criticisms that purchasing vacant commercial spaces and offices to supply housing completely ignores the needs of demanders.
The Ministry of Land, Infrastructure and Transport and the Ministry of Economy and Finance announced plans to supply 114,000 public rental housing units nationwide by 2022. Among these, the supply volume for the metropolitan area and Seoul is 71,400 units and 35,300 units, respectively. The supply volume for Seoul accounts for only 30% of the total target.
The government will newly introduce public jeonse (long-term lease) using vacant public rental housing. They plan to supply 18,000 units nationwide by 2022. The metropolitan area supply includes 13,000 units, including 5,000 units in Seoul.
Korea Land and Housing Corporation (LH) also plans to expand the method of purchasing multi-family houses or officetels from private construction companies through purchase agreements. They plan to supply 44,000 newly built public rental units nationwide by 2022: 21,000 units next year and 23,000 units in 2022. Additionally, 13,000 units nationwide will be supplied by remodeling vacant commercial spaces, offices, hotels, and other lodging facilities into residential use by 2022.
Despite the government securing the maximum volume, criticism and anger from public opinion continue. One netizen wrote, "Don't come up with measures; having no measures is the best." Others fiercely criticized, saying, "After villas, the next measure will be one-room apartments," and "If you live in a hotel, will you feel like traveling every day? I'm angry."
However, there are points that it is difficult to stabilize the jeonse market without lifting the added regulations. Professor Kwon Daejung of Myongji University's Department of Real Estate explained, "(The government’s measures) are just desperate actions taken as a last resort," adding, "Supply and demand instability will be resolved naturally only when items are released into the market through easing capital gains tax and other measures."
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