[2·4 Supply Measures] Public Reconstruction 'Pre-sale Price Differential Tax and 2-Year Mandatory Residence' Fully Lifted

Historic Housing Supply Plan Announced
830,000 Homes Nationwide by 2025
Largest Scale Including 3rd Phase New Towns
300,000 Homes in Seoul... Comparable to Gangnam 3 Districts
Hong Nam-ki: "Seoul Faces Supply Shock Level"

On the morning of the 4th, Hong Nam-ki, Deputy Prime Minister for Economy and Minister of Strategy and Finance, is making a presentation at the "Public-led 3080+ Metropolitan Area Housing Supply Drastic Expansion Plan Briefing" held at the auditorium of the Seoul Government Complex Annex. From the left, Kim Hak-jin, Deputy Mayor for Administration 2 of Seoul, Deputy Prime Minister Hong, and Byun Chang-heum, Minister of Land, Infrastructure and Transport. / Photo by Joint Press Corps

[Asia Economy Reporters Moon Jiwon, Kim Hyunjung] The government plans to supply an additional 830,000 housing units nationwide, including 320,000 units in Seoul, by 2025 through large-scale urban redevelopment projects and the designation of new housing sites. Combined with last year's announced plan to supply 1.27 million units in the metropolitan area, the total reaches 2.1 million units. This is the largest-scale supply plan ever, surpassing the '2 million units supply' during the Roh Tae-woo administration. To this end, the government has even offered a bold incentive to exempt the burden of the Reconstruction Excess Profit Recovery System for public-participated reconstruction projects.

On the 4th, the government announced the 'Public-led 3080+, Drastic Expansion Plan for Housing Supply in Metropolitan Areas' at the Government Seoul Office. The core of the plan is to supply 836,000 housing units nationwide by 2025. This is the 25th real estate measure since the Moon Jae-in administration took office and the first measure since Minister Byeon Chang-heum of the Ministry of Land, Infrastructure and Transport assumed office.

Minister Byeon explained at the briefing, "The 320,000 units supplied in Seoul are three times the size of Bundang New Town and similar in scale to the total number of apartments in the three Gangnam districts," adding, "Combining the 1.27 million units supply plan in the metropolitan area through the 3rd New Towns with this plan's volume results in a historic maximum scale exceeding 2 million units."

Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki also stated, "The government judged that it is necessary to implement an 'extraordinary supply plan' that exceeds market expectations to completely dispel concerns about housing supply and firmly stabilize the housing market."

One of the key points of the announced plan is the 'Public Direct Implementation Redevelopment Project.' Over the next five years, the goal is to supply a total of 136,000 units in this manner: 93,000 units in Seoul, 21,000 units in Gyeonggi and Incheon, and 22,000 units in provincial metropolitan cities. While existing redevelopment and reconstruction projects were mainly led by associations, the newly announced projects will be directly implemented by public institutions with residents' consent.

In particular, for public reconstruction projects, the government proposed incentives such as exempting the reconstruction excess profit burden tax, which can be imposed up to 50% of market price gains, and not applying the two-year residency obligation for association members.

The government will also promote the Urban Public Housing Complex Project, where public institutions secure sites and advance projects in areas such as station areas, semi-industrial zones, and low-rise residential areas with a certain minimum size. Through this method, 196,000 new housing units will be supplied nationwide over the next five years: 117,000 in Seoul, 30,000 in Gyeonggi and Incheon, and 49,000 in provincial metropolitan cities. For sites that do not meet the area requirements, small-scale redevelopment projects will also be pursued as a housing supply source.

Deputy Prime Minister Hong emphasized, "The 320,000 units to be supplied in Seoul represent a 'supply shock' equivalent to 10% of the total housing stock in Seoul," adding, "The massive expansion of supply will lead to a firm stabilization of the housing market."

Meanwhile, the government plans to discover 15 to 20 new housing sites to supply 263,000 units nationwide. This includes 180,000 units in Incheon and Gyeonggi and 83,000 units in provincial areas, with no allocation for Seoul. The government plans to designate new housing sites in areas with good accessibility to Seoul in the metropolitan area and focus on metropolitan cities in provincial areas. Specific locations and volumes will be announced separately later.

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