Supply Plan for 100,000 Housing Units in the Seoul Metropolitan Area to Be Announced Tomorrow

Discussion at the Private High-Level Party-Government Council Meeting

Seoul's '35-Story Limit' Rule Likely to Be Relaxed
Floor Area Ratio to Increase with Cash Donations

On the 30th, a widespread surge in jeonse prices and a shortage of jeonse properties have been observed, especially in Seoul, due to real estate regulations such as the Three Lease Laws. The photo shows the city center view from the 63 Building in Yeouido, Seoul. Photo by Mun Ho-nam munonam@

[Sejong=Asia Economy Reporter Lee Kwang-ho] The Democratic Party, the government, and the Blue House are set to announce a housing supply plan tomorrow aiming to provide about 100,000 households in Seoul and the metropolitan area. Although the announcement date was discussed as the 4th or 5th, the 4th is reportedly more likely.

According to the government on the 3rd, the party, government, and Blue House held a confidential high-level meeting on the 2nd afternoon at the Prime Minister's residence in Samcheong-dong, Jongno-gu, Seoul, to discuss housing supply measures to stabilize the real estate market. An attendee said, "There are still some points that need adjustment, so no conclusion has been reached yet," but added, "It is highly likely to be announced on the 4th."

The party and government plan to finalize the follow-up legislation on real estate measures and announce the supply plan at the National Assembly plenary session on the 4th, and hold an additional party-government meeting on real estate measures on the 5th.

The additional supply scale this time is expected to be around 100,000 households, including plans to increase the floor area ratio of land in Seoul and the 3rd New Towns. Currently, Seoul's floor area ratio is capped at a maximum of 250%, and the building height is limited to 35 stories, but these regulations are expected to be eased.

However, it is known that instead of simply increasing the floor area ratio, the government is considering receiving corresponding cash or housing through donations in kind. Until now, the donation in kind targets were mainly public rental housing, but it is understood that this reflects the judgment that it is difficult to attract participation from associations by accepting only public rental housing as donations in kind.

Cash donations in kind involve including a certain level of public rental housing in the increased space due to the floor area ratio increase and receiving the rest in cash. The cash received from donations in kind will be invested in the government's residential welfare projects. It is also a mechanism to recover development gains from reconstruction projects. Housing donations in kind involve the government receiving houses with exclusive areas of 85㎡ or less and converting them into public sale and public rental housing. It is expected that reconstruction associations will donate land where they can build houses and then build buildings, receiving the standard construction cost incurred and transferring ownership.

The government plans to supply more than half of the houses received through donations in kind as public sale housing, expanding special supply quotas for first-time homebuyers and newlyweds.

New land development targets utilizing idle sites include the Tae-neung Golf Course site in Nowon-gu, Seoul, the Seoul Trade Exhibition Center (SETEC) site in Gangnam-gu, the headquarters of Seoul Housing and Communities Corporation (SH Corporation) in Gaepo-dong, Gangnam-gu, idle railway sites near Guro Station and Hyochang Park Station, the Songpa-Tancheon retention basin Happy Housing pilot complex, and the Sangam DMC idle site.

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