No News on Supplying 14,000 Housing Units... Only a Small Supply in Namyangju

Preliminary Subscription Expanded to 32,000 Units
Experts Say "No Immediate Market Stabilization Effect"

[Image source=Yonhap News]

[Asia Economy Reporter Jang Sehee] The government has mobilized all remaining state-owned land to boost housing supply. However, with the previously announced plan to supply 14,000 housing units facing setbacks, it remains uncertain whether this new measure will translate into actual supply.

On the 11th, Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, announced plans to supply approximately 3,200 housing units on military land in Namyangju, Gyeonggi Province. Deputy Prime Minister Hong stated, "As part of efforts to promote housing supply in the metropolitan area, we plan to discuss detailed plans for supplying about 3,200 housing units by utilizing the military land in Namyangju," adding, "Based on the results, we will approve and announce specific project consignment and development plans through the State Property Policy Deliberation Committee on the 12th."

According to the Ministry of Economy and Finance, the military land near Toegyewon Station will be utilized. Additionally, for project sites including the military land in Namyangju, the hinterland of the Uijeongbu correctional facility (4,400 units), and the military land in Daebang-dong, Seoul (1,300 units), the government plans to expedite the designation of public housing districts and other permit procedures as quickly as possible.

The government will also increase the pre-sale housing units from the original 30,000 to 32,000 units. Sequential supply plans include 10,000 units in October (Namyangju Wangsuk 2, etc.), 4,000 units in November (Hanam Gyosan, etc.), and 14,000 units in December (Namyangju Wangsuk, etc.). The 3rd New Town district plan, reflecting increased floor area ratios, will be finalized within the year. However, the ratio of urban facility support land for securing and strengthening self-sufficiency functions will be maintained at the existing planned level.

No news on the Taereung CC and Gwacheon site plans, which were supposed to supply 14,000 housing units

The Taereung CC and Gwacheon sites, where the government had previously announced plans to supply a total of 14,000 housing units, currently lack concrete plans. Although the government promised to announce plans within this month, there remain significant hurdles such as consultations with local governments and opposition from local residents.

A government official stated, "Discussions with Nowon-gu and Seoul City remain for Taereung CC," and "For the Gwacheon site, we are currently searching for alternative sites." However, given recent circumstances, the possibility of the supply plan being scrapped due to opposition from local governments and residents cannot be ruled out.

The government's repeated additional supply measures are driven by rising housing prices. A senior government official said, "In a situation where the real estate market stabilization is slow, the government believes that showing its will on the supply side can help regain trust first." Recently, the real estate market has seen a surge in speculative buying alongside continued price increases.

According to the Korea Real Estate Board on the 12th, apartment prices in Seoul rose by 0.20% in the second week of August (as of the 9th), maintaining last week's increase. Particularly, the metropolitan area rose by 0.39%, slightly up from last week's 0.37%. Nationwide apartment prices also expanded their increase from 0.28% to 0.30%.

The market points out that housing supply takes time to be reflected in the market, so current measures are insufficient to resolve the supply shortage. Regarding this, Professor Shim Gyo-eon of Konkuk University's Department of Real Estate said, "Supply should be provided when needed in terms of timing, but only additional supply measures are being announced," adding, "It may help stabilize prices slightly, but it is difficult to have an immediate impact on the market."

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