[2·4 Supply Measures] 320,000 Houses in Seoul and 836,000 Nationwide to Be Supplied Within 4 Years (Comprehensive)

Government Announces 2·4 Housing Supply Plan... Establishment of Publicly Led Reconstruction and Redevelopment
Securing 616,000 New Homes in the Capital Area and 220,000 in Five Major Metropolitan Cities

[Image source=Yonhap News]

[Asia Economy Reporter Jo Gang-wook] The government plans to supply a total of 836,000 housing units nationwide, including 320,000 units in Seoul alone by 2025, through reconstruction and redevelopment projects directly implemented by the public sector. In particular, for areas near subway stations, semi-industrial zones, and low-rise residential areas, the government will directly designate districts and implement public housing complex projects led by public institutions.

On the 4th, the government announced the "Public-led 3080+, Drastic Expansion Plan for Housing Supply in Metropolitan Areas" at the Government Seoul Office. This is the 25th real estate policy under the current administration. Among the supply measures, the largest scale under this government, a development method directly implemented by public institutions such as Korea Land and Housing Corporation (LH) and Seoul Housing and Communities Corporation (SH) was introduced.

Through this supply plan, the government aims to secure 616,000 new housing sites in the metropolitan area and 220,000 units in five major provincial metropolitan cities including Busan and Daegu by 2025. The metropolitan area includes 323,000 units in Seoul and 293,000 units in Incheon and Gyeonggi Province. The 320,000 units in Seoul are equivalent to three new towns the size of Bundang.

Of the total 836,000 units, 573,000 will be secured through new projects within urban areas, and 263,000 through designation of new public housing sites. Specific locations for new sites in the metropolitan area will be announced later. When combined with the existing housing welfare roadmap and the 3rd new town projects, the total housing supply plan in the metropolitan area under this government approaches 2 million units.

Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, explained, "The total supply volume of this plan is about twice the annual nationwide housing supply, and the supply volume in Seoul accounts for 10% of Seoul's housing stock."

In this 2.4 supply plan, a new type of redevelopment and reconstruction project directly implemented by public institutions was introduced, and the "Urban Public Housing Complex Project" will be promoted, where the public sector directly undertakes projects in areas near subway stations, semi-industrial zones, and low-rise residential areas using the Public Housing Special Act to accelerate project progress.

These projects will receive floor area ratio incentives exceeding legal limits and will be designated as special architectural zones, easing various urban regulations such as sunlight rights and height restrictions.

The floor area ratio will increase up to 700% in areas near subway stations and up to 500% in semi-industrial zones. Existing residents are guaranteed a 10-30 percentage point higher return compared to their own previous projects. Development profits exceeding the guaranteed returns will be recovered and used to expand living SOC, support tenants, and provide public rental and public ownership housing for socially vulnerable groups.

If two-thirds or more of the residents agree, the project will proceed, and fast-track procedures such as integrated local government reviews will be activated to expedite the project. Reconstruction projects implemented by the public sector will not be subject to the reconstruction excess profit recovery system or the two-year residence obligation for union members.

Of the housing supply secured through these projects, 70-80% will be supplied as public sale, and 20-30% will be supplied as public ownership housing including repurchase conditions, land lease type, and equity accumulation type, as well as public rental housing.

The subscription system will also be reformed. Currently, general supply accounts for only 15% of public sales, but this will be increased to 30%, and a lottery system (30%) will be introduced for the general supply portion to expand subscription opportunities.

Byun Chang-heum, Minister of Land, Infrastructure and Transport, said, "If the business model presented today is implemented without fail, high-quality housing will be supplied rapidly at a speed exceeding market expectations. In addition, by improving the subscription system, we will greatly expand homeownership opportunities not only for newlyweds and first-time homebuyers but also for general homeless households in their 30s and 40s."

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