1-Year Discovery of 500,000 Housing Sites under the 2·4 Supply Plan "House Prices Begin to Fall Significantly"

Achieving 60% Target "2·4 Measures on Track"
"House Price Decline, Not Temporary but Trend Shift"

The government announced that candidate sites for supplying 503,000 housing units have been identified one year after the real estate supply measures (the 2·4 measures) announced last February. In particular, through this measure utilizing pre-sale applications, the supply lag has been shortened, and Seoul apartment prices have turned downward, marking the beginning of a full-fledged decline in housing prices, according to a self-assessment.

Achieved 60% of Target in Less Than a Year Since Announcement

On the 30th, the Ministry of Land, Infrastructure and Transport stated in a press release on the '1st Anniversary of the 3080+ Supply Measures' that less than a year after the announcement on February 4 last year of a real estate plan to supply a total of 836,000 housing units, candidate sites for 503,000 units, about 60% of the target volume by 2025, have been identified.

Among these, new urban candidate sites amount to about 170,000 units, which is roughly equivalent to the combined scale of the Ilsan and Bundang new towns. Additionally, among the 170,000 units, the Seoul candidate sites number 110 locations with a scale of 97,000 units, exceeding the size of the Bundang new town.

In particular, for the urban complex projects, which are the representative model of the 2·4 measures, district designations for about 10,000 units have been completed at seven locations including Jeungsan 4, Yeonsinnae Station, Banghak Station, Ssangmun Station (East), Ssangmun Station (West), Singil 2, and Bucheon Wonmi within nine months after the announcement. Among these, four locations plan to proceed with project plan approval, priority supply to landowners, and pre-sale applications (4,000 units) within this year.

The government self-assesses that progress is smooth, having secured candidate sites for 100,000 units (76 locations), which is more than half of the total target volume, over the past year. Among the 76 locations, 26 candidate sites (36,000 units) have secured the legal requirement of consent from more than two-thirds of residents for district designation. The government expects that district designation for more than 50,000 units will be possible this year as well.

District Designation to Supply Shortened by Over 10 Years, "Unprecedented Speed" Self-Assessment

The Ministry of Land, Infrastructure and Transport explained, "Despite the related legislative amendments being implemented only in September last year, seven months after the announcement, the achievements were made," adding, "Compared to existing redevelopment projects, the period from candidate site identification to district designation has been shortened by more than four years, and from district designation to supply by over ten years, proceeding with follow-up procedures at an unprecedented speed."

For public redevelopment projects, 35 candidate sites (37,000 units) have been selected so far, achieving 27.1% of the supply target. Among these, seven locations including Yongdu 1-6 District and Heukseok 2 District in Seoul have completed designation of public implementers. By type, there are 29 public redevelopment sites (34,000 units), 4 public reconstruction sites (1,500 units), and 2 public direct implementation sites (1,000 units).

Regarding the currently secured public redevelopment candidate sites, the plan is to finalize redevelopment plans for a total of 32,000 units within this year and further select more than 27,000 additional candidate units.

For the new public housing sites totaling 272,000 units, the resident inspection procedures were completed by the third quarter of last year, and preliminary procedures for district designation such as environmental impact assessments are underway. It was explained that public redevelopment projects are being promoted together as a complementary policy rather than competing with the 'Rapid Integrated Planning' (Sintong Planning) method, a private-led reconstruction approach introduced by Seoul City last year.

For small-scale redevelopment and urban regeneration project sites, a total of 57 candidate sites (32,800 units) have been selected, securing 23.4% of the target volume as candidate sites.

Among the 2·4 measure volumes, public housing sites, which account for the largest share, have completed candidate site designation for a total of 259,000 units, including Gwangmyeong and Siheung (70,000 units), Uiwang, Gunpo, and Ansan (41,000 units), and Hwaseong Jinan (29,000 units) last year.

Regarding pre-sale applications to expedite the supply of public housing sites, 543,000 people applied for 32,000 units in public pre-sale applications, recording an average competition rate of 17.3 to 1, and the highest competition rate for private pre-sale applications reached 136 to 1 (Pyeongtaek Godeok A-46), it was introduced.

[Image source=Yonhap News]

"Synergy of Supply and Financial/Monetary Policies... Housing Prices Begin Full Decline"

In particular, this year, the pre-sale application volume will be expanded to 70,000 units, double that of last year (32,000 public units, 38,000 private units), and more than 10,000 units will be supplied quarterly in preferred locations such as 2nd and 3rd phase new towns and the metropolitan area. Especially in the first quarter alone, a total of 15,000 units will be supplied through three rounds of pre-sale applications starting next month.

The Ministry of Land, Infrastructure and Transport self-assessed that the recent housing market has passed a turning point and entered a downward stabilization phase due to the combined effects of the 2·4 measures and changes in financial and monetary policy environments. Following actual transaction prices and sample survey prices turning downward, housing prices have entered a full-fledged decline phase.

Minister of Land, Infrastructure and Transport Noh Hyung-wook said, "It is reasonable to view this housing price decline not as a temporary phenomenon but as a market trend reversal," and added, "We will concentrate all capabilities on expanding supply and accelerating the pace."

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