'Gyeonggi and Incheon Also Go All-In'... Real Estate Supply Measures to Reduce Market Shock Announced

Government to Announce 'Housing Supply Plan' as Early as Early This Week

[Image source=Yonhap News]

[Asia Economy Reporter Jang Sehee] The government will announce a real estate supply plan this week. The plan aims to deliver a clear impact on the market by including comprehensive measures such as floor area ratio (FAR) relaxation and reconstruction floor restrictions.

On the 2nd, a government official stated, "A comprehensive real estate policy for the metropolitan area, including Seoul, Gyeonggi, and Incheon, will be released," adding, "We are also preparing safety measures to send a clear signal to the market."

As securing supply in the Seoul area has become difficult due to the unresolved Greenbelt release issue, sites available for supply in Gyeonggi and Incheon are also being considered. It is said that the supply volume will exceed 200,000 households.

Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, and Kim Hyun-mi, Minister of Land, Infrastructure and Transport, along with other real estate-related ministers, have formed a task force (TF) working group to review housing supply measures.

The proposed measures include ▲raising the floor area ratio in the 3rd New Towns ▲public redevelopment and reconstruction. While there is a high possibility of increasing the floor area ratio to raise building heights, it remains crucial how much the Seoul Metropolitan Government, which has strictly applied the floor area ratio and limited apartment heights to 35 floors, will reconcile differences through consultations with the ruling party and government.

Regarding reconstruction, reviews are also being conducted on priority complexes such as Eonma Apartments in Daechi-dong and Shibeom Apartments in Yeouido.

Additionally, utilizing government-owned sites such as the Taereung Golf Course in Nowon-gu, Seoul, has emerged as a likely option. Other options under in-depth discussion include supplying housing on sites after relocating the Anyang Prison and Uiwang Detention Center.

However, considering the shortage of supply from national and public lands, the final adjustments are reportedly underway regarding the targets and areas for floor area ratio relaxation and the corresponding profit recovery methods.

A government official said, "The goal is to secure as many units as possible to benefit various demand groups," adding, "After final coordination among related ministries, the announcement could be made as early as the beginning of next week."

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