"Supply Can Increase Just by Deregulation"... Experts Emphasize the Need for Specific Deregulation Measures

Policy Promotion Strategy Forum for Normalizing the Housing Market under the New Government

On the 15th at 2 PM, the 'Policy Promotion Strategy Forum for Normalizing the Housing Market of the New Government' was held at the National Assembly Members' Office Building in Yeouido, Seoul.
Photo by Hwang Seoyul

[Asia Economy Reporter Hwang Seoyul] Experts unanimously agreed that specific deregulation policies must be established to normalize the housing market.

At the 'Policy Promotion Strategy Forum for Normalizing the Housing Market under the New Government' held at the National Assembly Members' Office Building in Yeouido, Seoul, at 2 p.m. on the 15th, Professor Kwon Daejung of Myongji University's Department of Real Estate stated, "The previous government had many real estate-related regulatory policies, so even just deregulation can increase supply." Professor Kwon added, "While the previous government pursued a public-led real estate policy, the current government is moving toward a private-led policy, so regulations that can be boldly eased should be eased."

He also suggested that instead of vaguely proposing high floor area ratios, it is necessary to differentiate by region. Professor Kwon said, "A 500% floor area ratio for the 1st phase new towns is impossible," and added, "We need to correct the misconception among owners that this is an average floor area ratio." He further stated, "Given the shortage of urban land, it is necessary to increase the floor area ratio of the 3rd phase new towns, which currently have a floor area ratio below 200%, to improve profitability."

Kim Deok-rye, Director of the Housing Policy Research Office at the Korea Research Institute for Human Settlements, is presenting at the "Policy Promotion Strategy Forum for Normalizing the Housing Market under the New Government" on the 15th. Photo by Hwang Seo-yul

Before the forum, Kim Deokrye, Director of the Housing Policy Research Office at the Korea Housing Industry Research Institute, also presented, stating, "It is necessary to complete the three-stage housing market normalization measures by the first half of next year at the latest." Director Kim pointed out, "An annual demand increase of about 500,000 units is expected over the next five years," and added, "Unless the new government takes extraordinary measures such as securing additional public land, the annual supply is expected to remain at around 450,000 units." He proposed specific deregulation policies including ▲ easing urban redevelopment projects and safety inspections for 1st phase new towns (for apartments over 30 years old, when the number of housing units increases by a certain ratio) ▲ increasing standard construction costs for rental apartments ▲ introducing a competitive system for pre-sale guarantees.

During the forum, some of the new government's policy plans for the second half of the year were also disclosed. Kim Younghan, Director of Housing Policy at the Ministry of Land, Infrastructure and Transport, said, "We plan to announce improvements to the price ceiling system and high-priced pre-sale review regulations within June," adding, "We are preparing measures to reflect costs that were not properly considered and the recent sharp rise in material prices." He also stated, "We will announce a supply plan of 2.5 million units plus alpha before August," and added, "It will include bold regulatory reforms and incentives for developers."

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