Seoul Lifts Greenbelt for the First Time in 12 Years... 80,000 New Housing Units [8·8 Supply Plan]

Announcement of 50,000 Housing Sites in November and 30,000 Next Year
Inspection of Housing Transactions in Seoul and Metropolitan Area, Including GB Exceeding Transactions

The government will lift the Greenbelt (GB, development-restricted zone) in Seoul and the metropolitan area to expand housing supply. The target is set at 80,000 households by next year. Additionally, through joint on-site inspections and planned investigations of housing transactions in the metropolitan area, the government aims to improve housing supply conditions and enhance soundness.

On the 8th at 2 p.m., the Ministry of Land, Infrastructure and Transport announced the "Plan to Expand Housing Supply for National Residential Stability" at the 8th Real Estate Related Ministers' Meeting held at the Government Seoul Office.

Lifting GB for New Residential Sites... Temporary Designation of Land Transaction Permission Zones

The scale of new residential sites will be announced as 50,000 households this year and 30,000 households next year. This is four times the 20,000 households discovery plan announced in January. Of the 50,000 households this year, up to 70% will be supplied as sale and rental housing for newlyweds, childbirth, and multi-child families. The announcement is scheduled for November. Next year, the government plans to advance the announcement timing as much as possible in consultation with local governments and related ministries.

This is the first time in 12 years since 2012 that the Greenbelt in Seoul has been lifted. At that time, under the Lee Myung-bak (MB) administration, the Greenbelt was lifted mainly in Naegok-dong, Seocho-gu, and Segok-dong, Gangnam-gu to supply land for public rental housing.

Housing supplied from the lifted Greenbelt will be subject to the price ceiling system. To prevent speculation, the Ministry of Land, Infrastructure and Transport will temporarily designate the entire Seoul Greenbelt and metropolitan area as land transaction permission zones when announcing new residential sites. The land transaction permission zone system requires permission from the mayor, county governor, or district head to trade land within the designated area to curb real estate speculation. It can be designated for up to five years.

Along with this, the government will increase land use efficiency in ongoing projects such as the 3rd New Towns and metropolitan area residential sites to secure more than 20,000 additional housing units beyond the previous 30,000 units. Additional quantities will be actively secured through the use of reserved land and consultations with local governments.

Inspection of Housing Transactions in Seoul and Metropolitan Area... Catching Abnormal GB Transactions

The Ministry of Land, Infrastructure and Transport plans to conduct joint on-site inspections and planned investigations of housing transactions throughout Seoul and the metropolitan area until the end of this year. This will cover all transactions suspected of improper funding plans or illegal activities such as false reporting. The Financial Services Commission, Financial Supervisory Service, National Tax Service, Seoul City, Gyeonggi Province, Incheon City, Korea Real Estate Board, and Housing & Urban Guarantee Corporation (HUG) will participate. If illegal activities are confirmed, they will be reported to the National Tax Service, National Police Agency, Financial Services Commission, etc., and penalties such as fines will be imposed upon confirmation of charges.

A detailed planned investigation of the Seoul Greenbelt and adjacent areas will also be conducted until March next year. From now until the announcement of new residential site candidates, abnormal transactions among land trades will be investigated and reported to relevant agencies.

Furthermore, the government plans to continuously identify minor obstacles hindering housing supply. As part of this, the supply scale of real estate project financing (PF) loan guarantees will be expanded from the existing 30 trillion won to 35 trillion won, and housing supply status will be checked through meetings with metropolitan local government councils and basic regional inspection meetings. Additionally, to enable the supply of small and medium-sized urban lifestyle housing, the building area restriction will be relaxed to a net floor area of 850㎡ or less. To revitalize the maintenance of old and low-rise residential areas, the zoning within small-scale housing maintenance project management areas will be allowed to be upgraded up to 'quasi-residential' zones.