People's Solidarity for Participatory Democracy Warns of Speculation Risks in 830,000 Housing Supply Plan

Kyungsillyeon "Unprecedented Speculation-Encouraging Measures... House Prices Will Rise Further"

[Asia Economy Reporter Lim Chun-han] The People's Solidarity for Participatory Democracy (PSPD) stated on the 4th that the government's real estate supply plan for 830,000 units announced on the same day is "a supply direction focused on sales that is highly likely to create a speculative market" and expressed "deep disappointment."

In a commentary released that day, PSPD said, "This plan promises to supply a large number of sale housing units at prices lower than market value to appease genuine homebuyers trying to catch the last train at the peak, turning them into waiting demand," adding, "It greatly risks further stimulating jeonse demand and turning Seoul and metropolitan cities into massive speculative markets."

PSPD questioned, "Is it appropriate for the state to implement a policy that uses public resources and eminent domain to supply premium sale housing units focused on sales within urban areas?"

PSPD stated, "A significant portion of the planned sale housing units should be converted into public rental housing to expand affordable sale housing, and a fundamental and comprehensive housing policy must be established to guarantee housing rights."

The Economic Justice Network (Gyeongsilryeon) issued a commentary the same day, strongly criticizing, "An unprecedented speculative construction development plan that destroys Seoul's urban residential environment and promotes speculation has been announced," adding, "The proportion of rental housing in the supply volume is low, and it is unclear whether the sale prices are appropriate, so it will raise housing prices rather than stabilize housing for ordinary citizens."

Gyeongsilryeon said, "This large-scale supply will further encourage the already intensified concentration in the metropolitan area," and added, "Public enterprises should lead the supply of public apartments that remove housing price bubbles."

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