"Additional Measures Needed to Accelerate Housing Supply in Greater Seoul Area Must Be Specified"
Woori Bank has evaluated that the "2026 Greater Seoul Area Public Housing Supply Plan for 29,000 Units" will have a greater stabilizing effect on buyer sentiment than on housing prices. The bank pointed out that it is now necessary to focus on accelerating the pace of housing supply within urban areas of the Greater Seoul region.
Ham Youngjin, Head of Real Estate Research Lab at Woori Bank, stated on November 26, "It is disappointing that only about 1,300 units will be supplied in Seoul, the epicenter of housing price instability, while 95% of the new supply is concentrated in the Gyeongin area." He added, "There is an urgent need to realize plans to utilize government office sites and idle land within central Seoul, such as the Seongdae Baseball Stadium and Wirye business site."
Ham further analyzed, "Since this is a supply plan rather than immediate move-in, the focus should be on the government's commitment to expanding housing supply, policy consistency, and the ongoing signals of supply, which will help stabilize buyer sentiment, rather than expecting short-term effects on housing prices or rental supply in the Greater Seoul area."
He emphasized, "Additional measures to accelerate housing supply in urban areas of the Greater Seoul region should be specified, such as easing redevelopment regulations including floor area ratio and building coverage ratio based on public interest, introducing a fast-track system, and relaxing or abolishing the reconstruction excess profit recovery system."
On the same day, the Ministry of Land, Infrastructure and Transport, together with Korea Land and Housing Corporation (LH), Seoul Housing and Communities Corporation (SH), Gyeonggi Housing and Urban Development Corporation (GH), and Incheon Urban Development Corporation (iH), announced that from March to the end of next year, they will supply 29,000 public housing units in Seoul, Gyeonggi, and Incheon, all within the Greater Seoul area.
Of these, 1,300 units will be supplied in Seoul, 3,600 units in Incheon, and 23,800 units in Gyeonggi Province. Notably, the only site in Seoul, Godeok Gangil Block 3 (1,305 units), is scheduled for sale in August next year.
Ham noted, "Godeok Gangil Block 3 is expected to attract significant interest from prospective buyers. In Gyeonggi Province, attention should be paid to supply in areas such as Goyang Changneung, Namyangju Wangsuk, Seongnam Naksaeng, Seongnam Bokjeong, Hwaseong Dongtan, Suwon Gwanggyo, and Guri Galmae District."
This announcement increases the supply by about 2,000 units compared to the 27,000 units announced in the September 7 measures, through adjustments such as expanding unit sizes and increasing supply scale, mainly centered on Goyang Changneung District. In addition, details were released on 4,100 leading units in areas where land use will be converted, such as reserved land, self-sufficient land (commercial sites), and single-family residential land in the second and third new towns.
Ham assessed, "With land compensation for most sites in the third new towns nearing completion, the sales schedule for these areas has been clarified for 2026, and the conversion of non-residential land to residential use has become a reality. This is expected to raise hopes among those waiting to purchase homes through the sales market."
He also viewed the supply expansion in the Greater Seoul area for next year positively. Considering that the total supply of 120,155 units (public and private) in 2024 will decrease to 110,609 units in 2025, representing only 87% of the previous year, this is a meaningful scale.
He added, "Since the third new towns are public housing sites and subject to price caps, this will provide a relatively reasonable path to homeownership for buyers fatigued by high sale prices."
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