"Disappointing Expectations for 'Drastic Measures'... New Housing Sites and Greenbelt Not Easy"

Greenbelt Release Practically Difficult
Predictions of 200,000~300,000 Houses
Land Securing Challenges... Speed Also an Issue
Around 150,000 Houses Discussed

[Image source=Yonhap News]

[Asia Economy reporters Kangwook Cho and Mowon Moon] The government's additional housing supply measures, expected to be announced this week, are facing last-minute difficulties. Contrary to initial expectations that the net increase would exceed 200,000 households through high-density development in Seoul's station areas and the designation of new housing sites, there are now observations that the net increase will fall short of expectations. This is because the ruling party and government have already drawn the line against large-scale supply such as releasing greenbelt areas, making it realistically difficult to find alternatives.

According to government ministries and related industries on the 1st, the Ministry of Land, Infrastructure and Transport is conducting final work to estimate the possible supply volume related to housing supply expansion measures. A government official said, "There are many variables and challenges in supplying within the city center," adding, "The exact volume is still being estimated, so the numbers are not yet decided."

The most attention is focused on securing new housing sites. Following President Moon Jae-in's New Year's press conference remark about "bold development of new housing sites and exceeding market expectations," some speculated about the possibility of development on the scale of the 4th New Towns.

However, at present, securing new housing sites seems difficult. The government's refusal to release greenbelt areas, which had been consistently discussed, has reduced options. Therefore, candidate sites mentioned include the Gwangmyeong and Siheung districts in Gyeonggi Province, which were designated as public housing districts in 2010 but later canceled, as well as Hwajeon-dong in Deogyang-gu, Goyang City, and Gochon in Gimpo City. Regarding idle public land within the city, most available candidates are already included in existing measures, so additional volume acquisition is considered limited.

Along with new housing site development, public redevelopment and reconstruction, which are major pillars of supply, are also showing signs of trouble. Among the eight pilot project sites for public redevelopment, the Heukseok 2 district in Dongjak-gu, which attracted the most attention, recently withdrew from the project. Public reconstruction is also being shunned by the market, with major complexes declaring non-participation from the consulting stage.

Doosung Kyu, senior researcher at the Korea Research Institute for Construction Industry, pointed out, "The government is currently rushing just to meet the volume," adding, "It seems the supply method will be filling in leftover land, but whether this will help stabilize the housing market is uncertain."

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