Government "Reexamines Housing Supply Plan from Scratch"... Additional Measures to Be Announced Next Month

'The 1st Real Estate Market and Supply Situation Task Force (TF) Meeting'
Acceleration of Urban Renewal Projects, Early Supply of 3rd New Towns
Dispatch of Experts to Reconstruction Sites with Agreed Construction Cost Adjustments

When crossing the Banpo Bridge in Seoul, you can see new apartments, old apartments, and apartments under construction all at once in the Sinbanpo area. The new apartments on the left are Acro Riverview Sinbanpo, the low old apartments on the right are Sinbanpo 2nd Complex, and the apartments under construction in the back are the Maple Xi construction site. Photo by Younghan Heo younghan@

The government has decided to reconsider all policy measures from scratch regarding the 'Additional Housing Supply Expansion Plan' scheduled to be announced next month. Key housing supply expansion measures include speeding up urban redevelopment projects by shortening procedures, accelerating housing supply on public land in the metropolitan area including the 3rd New Towns, securing additional land in the metropolitan area, and expanding non-apartment housing supply.

On the 25th, the government held the '1st Real Estate Market and Supply Situation Monitoring Task Force (TF)' jointly chaired by Kim Beom-seok, 1st Vice Minister of the Ministry of Economy and Finance, and Jin Hyun-hwan, 1st Vice Minister of the Ministry of Land, Infrastructure and Transport, with participation from the Ministry of Economy and Finance, Ministry of Land, Infrastructure and Transport, Ministry of the Interior and Safety, and Financial Services Commission. At this meeting, participants discussed recent housing market trends and housing supply progress. Given the recent widening price increases centered on apartments in Seoul and some metropolitan areas, they agreed to manage the market to prevent speculative demand from spreading.

Regarding housing supply, nationwide housing starts from January to May this year increased by 31% compared to the same period last year, showing some positive trends; however, since the level is still below the average, measures will be taken to resolve the backlog of housing starts.

Efforts will also be made to adjust construction costs. Recently, agreements on construction cost adjustments have been reached at five projects totaling approximately 7,766 households, including Jamsil Jinju in Seoul, Daejo 1 District, Cheongdam Samik, Haengdang 7 District, and Suseong Beomeo Woobang 1st in Daegu. Experts will be dispatched to these areas showing some progress, and mediation efforts will be strengthened to support uninterrupted progress of redevelopment projects.

For the 3rd New Towns' five districts, public housing construction is planned to start with 1,285 households in Incheon Gyeyang in March this year, aiming to begin construction of 10,000 households this year. Sales in the Incheon Gyeyang area are scheduled for September this year, with occupancy targeted for December 2026. The Korea Land and Housing Corporation (LH) plans to implement various sales strategies such as the land return system to ensure timely sale of private housing land.

For non-apartment housing, policy efforts to expand supply continue, including the amendment of the Enforcement Decree of the National Land Planning and Utilization Act, which includes the 'New Village Project Floor Area Ratio Incentive' plan, expected to pass the Cabinet meeting in July.

Regarding newly built rental housing, about 60,000 households' business applications have been received, and procedures for contract signing are underway. The Dundeun Jeonse Housing, which offers affordable rent at 90% or less of nearby market prices, is also preparing for its first occupancy next month.

The 'Real Estate Market and Supply Situation Monitoring TF' will be held weekly going forward. Progress will be monitored to ensure that a total of 236,000 households can be supplied by 2029 in excellent residential environments such as the 3rd New Towns, and related ministries will cooperate to prepare additional housing supply expansion measures.