2.5 Million and 3 Million 'Supply Bomb'... Housing Supply Increases Regardless of Who Wins

Apgujeong Hyundai Apartment_Real Estate Reference Photo / Photo by Hyunmin Kim kimhyun81@

[Asia Economy Reporter Kangwook Cho] This presidential election has drawn significant attention to real estate policy pledges, to the extent that it is said to be decided by the "real estate public sentiment." Both ruling and opposition candidates are advocating for increased housing supply, so it appears that housing supply will increase regardless of which candidate wins.

The supply target set by Lee Jae-myung, the Democratic Party presidential candidate, exceeds 3 million housing units. This plan adds 1.05 million units to the 2.06 million units already announced by the current administration.

The supply method is publicly led. A representative example is the "Basic Housing," part of Lee's trademark "Basic" series. Lee's housing supply plan includes 1.4 million publicly led Basic Housing units (800,000 rental type + 600,000 sale type). Basic Housing is public housing that guarantees anyone without a home the right to live for over 30 years at a low rent close to cost price in areas with high accessibility to workplaces and transit stations. However, the plan for securing funding is evaluated as unclear. Additionally, Lee pledged to prioritize 30% of new supply units for young people purchasing their first home and to expand monthly rent tax deductions.

Yoon Seok-youl, the People Power Party presidential candidate, shares the strategy of stabilizing housing prices through a "supply bomb" with Lee.

However, Yoon's approach differs in that he supplements private reconstruction. Yoon divides the supply into 2 million units led by the private sector and 500,000 units led by the public sector. Specifically, ▲470,000 units through reconstruction and redevelopment ▲200,000 units through urban and transit station complex development ▲180,000 units through national and public land and vehicle depot complex development ▲100,000 units through small-scale maintenance projects ▲1.42 million units on public land ▲130,000 units through other means. Among these, the 500,000 publicly led units are largely allocated to youth and newlyweds for housing stability, including youth cost-price housing and first homes near transit stations.

However, some criticize Yoon's pledge, saying, "It is contradictory to promise the complete resolution of abnormal housing occupancy while announcing a smaller supply plan than the Moon Jae-in administration."

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