"Contributing to Housing Price Stability by Timely Implementation of Government Supply Plans"
Seoul Housing and Communities Corporation (SH Corporation) has proposed participation in the 3rd New Town project to the Ministry of Land, Infrastructure and Transport. The intention is to contribute to stabilizing housing prices in the metropolitan area by timely implementing the government’s New:Home plan to supply 500,000 homes.
Kim Heon-dong, President of SH Seoul Housing and Communities Corporation. Photo by Heo Young-han younghan@
On the 21st, SH Corporation announced that it recently requested the Ministry of Land, Infrastructure and Transport to allow participation in the development of the Guri Topyeong 2 District, which is closest to Seoul among the newly announced public housing districts, as well as existing 3rd New Town areas including Gwangmyeong Siheung, Gwacheon Gwacheon, Namyangju Wangsuk 2, and Hanam Gyosan.
In October, SH Corporation proposed to the Ministry of Land, Infrastructure and Transport, the project executor designation authority, securing public housing (such as rental housing) sites through participation as a project executor in four districts including Gwangmyeong Siheung, which is currently un-compensated, as well as Gwacheon Gwacheon, Namyangju Wangsuk 2, and Hanam Gyosan.
SH Corporation plans to secure these sites to supply affordable yet high-quality public housing such as long-term lease housing, long-term public rental housing, and “building-only sale century homes,” thereby contributing to housing stability for low-income residents.
Over the past decade, the Ministry of Land, Infrastructure and Transport has granted LH Corporation the rights to implement major land development projects in Seoul areas such as Seocho, Gangnam, Yangwon, and Suseo station areas. Despite SH Corporation having sufficient capacity, it has not been able to properly secure sites for public housing supply for Seoul citizens.
Meanwhile, LH Corporation, despite receiving project approval for the 3rd New Town, is facing difficulties in supplying housing on schedule due to delays in compensation and construction commencement. Accordingly, SH Corporation plans to swiftly supply public housing for low-income residents by securing rental housing sites within the 3rd New Town.
Furthermore, SH Corporation aims to contribute to stabilizing housing prices in Seoul and the metropolitan area by accelerating development through an additional participation request for the Guri Topyeong 2 District, which borders eastern Seoul and has high housing demand from Seoul and metropolitan residents.
An SH Corporation official stated, “Rapid supply of public housing is necessary for housing stability of Seoul and Gyeonggi residents, and there is a need to significantly increase the stock of public housing.” He added, “If SH Corporation participates in the 3rd New Town project, it will greatly help the timely realization of the government’s New:Home plan to supply 500,000 homes and Gyeonggi Province’s plan to supply 200,000 homes at half the market price.” He continued, “If retirement-focused housing such as Gold Town is supplied in the 3rd New Town, where commuting to Seoul is unnecessary, it will promote relocation and, based on the resulting vacancy effect, increase housing supply in Seoul.”
Kim Heon-dong, President of SH Corporation, said, “SH Corporation’s participation and prompt development of the 3rd New Town is essential for housing stability of Seoul and Gyeonggi residents.” He added, “Through collaboration among local governments and competition among public enterprises, this will be a good example of securing the public interest of public enterprises by contributing to housing stability for Seoul and Gyeonggi residents. We ask the Ministry of Land, Infrastructure and Transport to consider these points and make a wise decision.”
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