LH Sets Housing Project Approval Target at 105,000 Units for This Year
Only 94 Units Approved by May
Construction Volume at 140 Units, Less Than 2% Compared to 2022
Assemblyman Ahn Taejun Warns of Supply Shortage in 3-4 Years, Calls for Expanded Public Supply
Ahn Tae-jun, a member of the Democratic Party of Korea representing Gyeonggi Gwangju-si Eul, urged the Ministry of Land, Infrastructure and Transport to take measures against the housing supply crisis, stating, "President Yoon Suk-yeol announced the supply of 2.5 million new homes upon his inauguration, but looking at the housing-related indicators, it seems we can no longer have high expectations."
On the 17th, during the plenary session of the Land, Infrastructure and Transport Committee held at the National Assembly, Rep. Ahn said, "The public sector should play a greater role especially during a real estate downturn, but if things continue like this, there is a risk of a move-in crisis."
According to an analysis through the Land, Infrastructure and Transport Statistics Nuri, the number of housing starts was 583,737 units in 2021, but decreased to 383,404 units in 2022 and 242,188 units in 2023. As of May 2024, the number of housing starts is only 106,537 units, indicating a significant decline in move-in volume in the coming years.
Furthermore, housing permit achievements also declined from 545,412 units in 2021 to 521,791 units in 2022 and 428,744 units in 2023. As of May 2024, it stands at 125,974 units. A representative from Rep. Ahn’s office stated, "Arithmetically, it is estimated that this year will barely exceed 300,000 units."
"Nevertheless, the role of Korea Land & Housing Corporation (LH), which is responsible for a significant portion of public housing supply, has greatly diminished," Rep. Ahn’s office pointed out.
According to LH, the housing project approval target for 2024 was 105,000 units, but only 94 units had been approved by May. Additionally, the construction start target for this year was 50,000 units, but the actual number of housing starts was only 140 units.
With private sector housing starts sharply declining from 495,000 units in 2021 to 349,000 units in 2022 and 225,000 units in 2023, the reduction in supply volume in the public sector as well raises the possibility that a move-in crisis could become a reality.
Rep. Ahn expressed concern, saying, "Due to the high-interest rate trend, rising raw material costs, and economic recession, the private sector is significantly reducing new supply, so the public sector must take a more proactive role to fill the gap left by the private sector." He added, "If this trend continues, a move-in crisis could occur within a few years." He further emphasized, "If measures are not prepared promptly, the housing stability of ordinary citizens will inevitably worsen."
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