Minister Park Sang-woo: "Sufficient Housing Supply in Seoul and Metropolitan Area... 242,000 Units Including 3rd New Towns to be Occupied by 2029"

"Seoul and Capital Area Apartment Supply Similar to Long-Term Average"
"Most Compensation Issues in 3rd New Towns Resolved... Land Development Underway"
Rental Purchase Housing to Increase from 120,000 to at Least 130,000 Units by Next Year

Minister of Land, Infrastructure and Transport Park Sang-woo is speaking at the Real Estate Related Ministers' Meeting held at the Government Seoul Office in Jongno-gu, Seoul on the 18th. Photo by Yonhap News

Amid growing concerns about housing supply shortages centered around Seoul and the metropolitan area, the government has rebutted by stating that the supply volume is similar to the past average. In particular, it emphasized that from this year until 2029, 236,000 housing units will be sold and 242,000 units will be occupied in the 3rd New Towns and small-scale housing sites in the metropolitan area, so there will be no shortage of supply in the metropolitan area.

Park Sang-woo, Minister of Land, Infrastructure and Transport: "Seoul Apartment Move-in Volume at 100% to 127% of Long-term Average"

On the 18th, Park Sang-woo, Minister of Land, Infrastructure and Transport, said at the 'Real Estate Related Ministers' Meeting' held at the Government Seoul Office in Jongno-gu, Seoul, "Looking at the housing supply situation such as permits and construction starts from January to May this year, the supply volume of apartments in Seoul and the metropolitan area is similar to the long-term average."

According to an analysis by the Ministry of Land, Infrastructure and Transport based on Seoul's permit data, the number of apartment move-ins in Seoul this year is 38,000 units, which is the same as the 10-year average (38,000 units). The move-in volume next year is 48,000 units, which is 127% more than the long-term average.

This year, the apartment move-in volume in the metropolitan area is 188,000 units, which is 110% more than the long-term average of 171,000 units. Next year's move-in volume is 152,000 units, which is less than the long-term average but at 89% of the long-term average, so the supply is not significantly reduced.

Minister Park said, "We are planning the main subscription for a total of 236,000 housing units in the 3rd New Towns and new housing sites in the metropolitan area by 2029," adding, "Future housing supply in the metropolitan area will be sufficiently achieved." During the same period, the move-in volume for the 3rd New Towns and new housing sites in the metropolitan area is 242,000 units. Also, 10,000 units in the 3rd New Towns will begin construction within this year.

Deputy Prime Minister and Minister of Economy and Finance Choi Sang-mok and Minister of Land, Infrastructure and Transport Park Sang-woo visited the Government Seoul Office in Jongno-gu, Seoul on the 18th to attend the 'Real Estate Related Ministers' Meeting.'
[Photo by Ministry of Economy and Finance]

The 3rd New Towns will start selling 77,000 housing units in five districts beginning with Incheon Gyeyang in September. The new housing sites in the metropolitan area are districts smaller than 3.3 million square meters, such as Guri Galmae Station area and Ansan Jangsang, with a supply volume of 159,000 units.

In particular, since most compensation issues within the 3rd New Towns have been resolved, housing is expected to be supplied smoothly. Minister Park said, "Most of the compensation procedures for the 3rd New Towns have been completed, and land development work is currently underway," adding, "Construction of 10,000 units is planned in five locations this year." According to the Ministry of Land, Infrastructure and Transport, 99% of land compensation and 95% of compensation for fixtures in the 3rd New Towns have been completed.

Minister Park said, "In the second half of this year, the selection of pilot districts for the redevelopment of the 1st New Towns is scheduled, and the 'New:Village' project, which develops old low-rise residential areas where redevelopment is difficult, will also select pilot districts this year," adding, "These measures will restore housing supply conditions."

Also, through the release of the Greenbelt, candidate sites for new housing sites in the metropolitan area with a scale of 20,000 units will be announced in the second half of this year.

"Non-apartment Supply in Seoul and Metropolitan Area Greatly Reduced... Will Increase Public Rental Housing"

However, Minister Park pointed out, "Unlike the supply volume of apartments in Seoul and the metropolitan area, the supply volume of non-apartments such as villas has shrunk by about 30 to 40% compared to the long-term average." This is due to the concentration of demand on apartments in Seoul and the metropolitan area caused by the aftermath of rental fraud, expectations of interest rate cuts, and supply anxiety.

In this situation, the Ministry of Land, Infrastructure and Transport plans to supply at least 130,000 public purchase rental housing units by next year. The supply target for purchase rental housing was 120,000 units, but the Ministry decided to increase it by at least 10,000 units through consultation with the Ministry of Economy and Finance. Minister Park said, "The increase of 10,000 purchase rental housing units has been agreed upon with the Ministry of Economy and Finance. The supply volume of purchase rental housing may increase further through future consultations."

He said, "For newly built purchase rental housing, about 60,000 applications have been received," adding, "Procedures for contract signing are currently underway." Among the existing supply target of 120,000 purchase rental housing units, the target for newly built purchase rental housing is 100,000 units, and for existing purchase rental housing is 20,000 units.

Meanwhile, based on the meeting held that day, the Ministry of Land, Infrastructure and Transport plans to announce a new supply plan early next month.