[Exclusive] Yoon's 5-Year Housing Supply Roadmap to Be Released in Second Half... 'New Sites' to Be Announced

Yearly Supply Plans and Supply Site Development Proposals Expected... Separate TF Formed to Prepare Tax System Reform Work

[Asia Economy Reporter Baek Kyunghwan] A roadmap outlining the housing supply plan for the five years of the Yoon Seok-yeol administration will be unveiled in the second half of the year. As a detailed plan for the '2.5 million housing units supply' pledged during the presidential election, the government intends to quickly send supply signals to the market to stabilize demand uncertainties. In particular, efforts to find 'new land' will begin, centered on the Ministry of Land, Infrastructure and Transport and the Seoul Metropolitan Government. This is based on the judgment that relying solely on new units from redevelopment projects has limitations in meeting the total supply volume.

According to the Presidential Office and political circles on the 12th, the government plans to announce a roadmap in the second half of this year that includes detailed annual and regional supply plans for 2.5 million housing units. This was also included in the policy implementation plan of the Presidential Transition Committee. A Presidential Office official explained, "Deregulation and supply pledges are the top priorities of the Yoon administration's housing policy," adding, "Since many deregulation issues require the National Assembly's cooperation and will take time, the government will first present its supply policy to the public."

The current supply volume planned during the administration includes 1.42 million units from public land development including new towns (740,000 units in the metropolitan area), 470,000 units from redevelopment and reconstruction projects (300,000 units in the metropolitan area), 200,000 units from urban and station area development (130,000 units in the metropolitan area), 180,000 units from complex development of national and public lands (140,000 units in the metropolitan area), 100,000 units from small-scale redevelopment projects (65,000 units in the metropolitan area), and 130,000 units from private development through purchase agreements.

However, President Yoon did not specify concrete supply methods or timing for the 2.5 million units during the election or even after winning. The lack of market expectations for supply after the inauguration of the Transition Committee is why the government plans to establish detailed supply plans immediately after the appointment of the Minister of Land, Infrastructure and Transport.

The roadmap to be released within the year will include annual supply plans and detailed development plans for sites already scheduled for supply. It will also contain policies for the necessary redevelopment of first-generation new towns and deregulation of redevelopment projects to ensure smooth supply. In particular, pilot project sites for the youth cost-price housing and the first home near stations, which are representative models of the Yoon administration's housing policy, are likely to be announced early. It has been confirmed that the Transition Committee set goals to achieve early results linked to urban complex projects, public redevelopment, and urban regeneration.

The Ministry of Land, Infrastructure and Transport and the Seoul Metropolitan Government have also started joint efforts to find new housing supply sites. They aim to form a task force (TF) to identify idle land within urban areas. Previously, the Transition Committee and Seoul City discussed utilizing the Yukyoung Foundation site located in Neung-dong, Gwangjin-gu, Seoul, as a new supply site for the Yoon administration's housing policy. In addition to the Yukyoung Foundation site, they plan to identify additional sites that can be developed through private negotiations. Site selection and announcement can proceed quickly within the scope that can block speculative forces.(Refer to the April 21 front page article '[Exclusive] Yukyoung Foundation Neung-dong Site to Build 'Yoon Seok-yeol Public Housing')

In addition to supply, deregulation and improvements to the housing finance system will be discussed jointly with the Ministry of Justice, Ministry of Economy and Finance, and others. The basic framework will be disclosed through the roadmap announcement, including adjustments to the calculation standards for the price ceiling system, easing of reconstruction charges, relaxation of safety inspections, enactment of remodeling laws, and plans to improve the lease protection law.

Work to reform tax systems to reduce the burden on citizens will also begin. A new inter-agency task force will be established to coordinate this, and a 'housing tax system rationalization plan' considering tax equity and revenue structure will be announced. This will include a review of heavy taxation policies on multi-homeowners regarding property and capital gains taxes, integration plans for property tax and comprehensive real estate tax, among others. The 'officially assessed price realization plan' is expected to be adjusted in pace depending on market impact and other factors. A Presidential Office official stated, "The detailed plans for housing policy by the new government will be finalized by the relevant ministries and agencies, but the implementation plan for supply is unlikely to change significantly."

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