[Breaking News] Lee Jae-myung: "Urban Redevelopment and Increasing Floor Area Ratio Should Take Priority Over Damaging Gangnam Greenbelt"

Lee Jae-myung, Governor of Gyeonggi Province

[Asia Economy Reporter Heo Midam] Lee Jae-myung, Governor of Gyeonggi Province, said on the 19th regarding the real estate supply issue, "It is preferable to solve the problem by increasing supply through urban redevelopment, raising floor area ratios in urban areas, and developing new housing sites throughout Gyeonggi Province, rather than damaging the Greenbelt (development-restricted area) in prime locations in Seoul."

In an interview with a media outlet on the same day, Governor Lee stated, "The method of expanding supply by damaging the Greenbelt needs to be reconsidered."

He added, "The core of housing supply is what kind of housing is provided; it should be used as a means of residence, such as public rental housing, rather than as a speculative tool. If the Greenbelt in prime areas of Gangnam, Seoul is lifted, there is a very high possibility that it will become speculative assets, so caution is necessary."

He also said, "According to the current price ceiling system for pre-sale prices, houses built by lifting the Greenbelt have pre-sale prices significantly lower than the surrounding market prices, making them likely to become a 'lottery'. Under the current pre-sale price ceiling system, supplying housing by lifting the Greenbelt will not curb housing prices but rather cause a nationwide 'pre-sale frenzy'."

He emphasized, "Housing supply through the Greenbelt in prime locations in Seoul has more drawbacks than benefits." This statement by Governor Lee, one of the potential next-generation leaders of the ruling party, is effectively opposing the expansion of housing supply through lifting the Greenbelt, which the ruling party and government are considering.

This content was produced with the assistance of AI translation services.