Ministry of Land, Infrastructure and Transport Reviews Public Housing Supply Targets for This Year and Next Year
The Ministry of Land, Infrastructure and Transport has set the public housing supply target for next year at 252,000 units. This is intended to strengthen the role of the public sector amid sluggish private housing supply.
On the 12th at 2 p.m., the Ministry announced that it held a meeting among public housing supply institutions such as Korea Land and Housing Corporation (LH), Seoul Housing and Communities Corporation (SH), and Gyeonggi Housing and Communities Corporation (GH) at LH’s Seoul headquarters. The purpose was to review this year’s housing supply performance by each public institution and discuss next year’s supply plans.
The Ministry plans to supply 252,000 public housing units next year, including newly constructed public housing and purchased rental housing. It aims to push for permits for 150,000 newly constructed public housing units, an increase of 5,000 units from the previous target of 135,000 units. Housing starts for these units are set at 70,000 next year, up 20,000 units from 50,000 units this year. In particular, to accelerate housing supply, more than 20% of the planned volume will seek permit approval applications or start construction within the first half of next year.
For newly constructed purchased rental housing, more than 110,000 units will be supplied by next year. As of early this month, applications for purchase agreements for more than 210,000 units have been submitted, and follow-up procedures are underway. These will include medium-sized units, mainly in areas near subway stations.
Public land such as the 3rd New Town will secure an additional total of 50,000 units by 2027 through district plan changes, following 18,000 units secured this year and next year.
The Ministry set these public housing supply targets due to the sluggish private housing supply. According to the Ministry, as of last month, the cumulative permit volume for this year was 244,777 units, which is 45% of the initial target and a 19.1% decrease compared to last year’s 302,744 units. In contrast, public housing permit applications have been completed for 129,000 units out of the 140,000 permit target this year.
In this situation, the Ministry is also working to improve conditions for private supply. It supports financing through the Housing and Urban Guarantee Corporation (HUG)’s real estate project financing (PF) guarantees.
Park Sang-woo, Minister of Land, Infrastructure and Transport, said, "Public institutions must play an active role to resolve residential polarization, which is key to stabilizing people’s livelihoods," and added, "We will manage the implementation to achieve this year’s supply target in the remaining month."
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