Pre-Subscription Expanded to Include Private Housing and Urban Supply Quantities

Minister of Land, No Hyung-wook, to Announce in Public Address on 28th
"Schedule, Location, Subscription Method, Developer Incentives to be Announced Soon"

Minister of Land, Infrastructure and Transport Noh Hyung-wook is announcing plans to promote preliminary subscription for the 2.4 Plan supply volume to expand housing supply during a joint statement with related ministers on real estate held at the Government Seoul Office Building on the 28th. / Provided by the Ministry of Land, Infrastructure and Transport.

[Asia Economy Reporter Kangwook Cho] The government is expanding the scope of pre-sale housing subscription not only to existing public housing but also to housing supplied in downtown Seoul under the 2·4 Plan, including private housing on public land and public housing complex projects.

No Hyung-wook, Minister of Land, Infrastructure and Transport, announced this plan at a joint real estate ministerial briefing held at the Government Seoul Office on the 28th.

Minister No said, "To maximize the market stabilization effect through pre-sale subscription, we will actively promote expanding the pre-sale subscription, which is currently applied only to Korea Land and Housing Corporation (LH) public housing sales, to private housing on public land and the 3080 downtown supply volume."

He added, "We will announce the schedule, location, subscription method, and developer incentives for the pre-sale subscription expanded to downtown supply volumes as soon as possible."

On the same day, the government began pre-sale subscriptions for 4,333 units in new metropolitan area sites such as Gyeyang in Incheon and Bokjeong 1 in Seongnam. For now, all are limited to public housing supplied by LH.

Along with this, Minister No said, "For the 3rd generation new towns and other previously announced public land districts, we plan to finalize the district plans for a total of 240,000 units by the end of the year," adding, "Preparations such as local government consultations and abnormal transaction investigations are progressing smoothly for the remaining 130,000 units of undeclared land, and we will disclose specific locations and volumes in August."

The Ministry of Land plans to finalize and announce detailed plans for alternative sites such as the Gwacheon government office site and Taereung CC in Nowon-gu, Seoul by August, and start district designation and other approval procedures within the year.

Minister No also stated that new supply projects such as the downtown public housing complex project announced in the 2·4 Plan will proceed without delay.

He introduced, "In just over five months since announcing the 2·4 Plan, we have identified downtown candidate sites capable of supplying 126,000 units through projects such as downtown complexes, public maintenance, and residential regeneration innovation districts."

Minister No explained, "Among the 52 downtown complex project candidate sites, 31 have already met the requirements for district designation," and added, "To quickly realize large-scale apartment supply in downtown areas with good proximity between residence and workplace, we plan to sequentially proceed with district designation and project plan approval starting in November."

He also reaffirmed the policy to strengthen cooperative relations with the Seoul Metropolitan Government.

Minister No said, "We will strengthen cooperation with local governments responsible for housing supply on the front lines and disclose specific housing supply progress to the public," adding, "Last month, we enhanced legislative cooperation with Seoul City, including amendments to the Urban Maintenance Act to stabilize the reconstruction market, and we plan to intensively discuss harmonious promotion plans for public and private supply."

Minister No explained, "If the government's announced supply policies are implemented, 560,000 units nationwide, 310,000 units in the metropolitan area, and 100,000 units in Seoul can be supplied annually over the next 10 years," adding, "The 310,000 units in the metropolitan area is an overwhelming volume, exceeding the total construction volume of 290,000 units in the first-generation new towns such as Bundang and Ilsan." According to Minister No, this is equivalent to building more than 10 first-generation new towns in the metropolitan area in the future.

He did not omit a warning about the possibility of future house price declines.

Minister No stated, "If the monetary authorities strengthen household loan management and large-scale housing supply proceeds without setbacks, the downward stabilization trend in the housing market may appear more significantly than market expectations."