Daejeon City to Supply 20,000 Housing Units This Year... 14,000 Units Less Than Planned

[Asia Economy (Daejeon) Reporter Jeong Il-woong] The city of Daejeon expects to supply a total of 20,000 housing units this year. This is 14,000 units less than the initial plan at the beginning of the year, but the city anticipates an increase in supply volume next year with the establishment of the integrated review system.

On the 29th, the city announced the results of its analysis of the local housing market. According to the announcement, the housing supply volume to be delivered by the end of the year is about 20,000 units, which is an increase of 10,000 units compared to the previous year (10,000 units).

However, the sale of about 4,300 units in Yongmun 1, 2, and 3 districts and Doma Byeondong 11 district, which were scheduled for this year, has been postponed to next year, and the supply of about 6,500 units from eight projects including the Hakha district public-supported private rental housing has been delayed, resulting in a reduction in the originally planned housing supply volume.

This is interpreted as a result of changes in the supply schedule due to business conditions and market situations of private housing projects and redevelopment and other maintenance projects.

However, from next year, the city expects that stable and prompt housing supply will be possible as the integrated review system settles on site.

Introduced for the first time nationwide in Daejeon, this system integrates the review processes of urban planning, traffic, landscape, architecture, disaster, etc., which were previously conducted individually, preventing duplicate consultations among related departments and significantly reducing the review period from up to nine months to two months.

Starting with two cases (1,479 units) including the Yucheon-dong residential complex building in September, the city completed reviews for six cases within two months, including two cases (973 units) such as the Yongjeon Neighborhood Park development act exception project in October, and two cases (1,765 units) of Hakha public-supported private rental housing this month.

Additionally, the city plans to conduct integrated reviews next month for the Sannae regional housing association (907 units) and the cultural park development act exception project (509 units), with pre-consultations currently underway with related departments.

On the other hand, projects subject to approval by autonomous districts (under 500 units) and redevelopment maintenance projects cannot implement integrated reviews due to insufficient legislation. The city plans to expand the scope of reviews once related laws such as the Housing Act, which the central government aims to revise for integrated review implementation in the first half of next year, are amended.

Jung Hae-gyo, Director of the City Urban Housing Bureau, said, “Through integrated reviews, we will enable prompt housing supply so that a total of 73,000 housing units can be supplied in the region by 2023. In the long term, the goal is to supply 131,000 housing units by 2030 and raise Daejeon’s housing supply rate to 113%, which is at the level of advanced countries.”

Meanwhile, the average monthly increase rate of housing prices in the Daejeon area recently shows a declining trend, dropping from 0.39% in December last year to 0.18% this month.

The number of transactions also decreased by 22%, from an average of about 1,800 cases per month in the first half of the year to an average of 1,438 cases per month in the second half.