170,000 households in the downtown candidate site… The combined size of Ilsan and Bundang
Designation of 10,000 households in 9 months… Supply one and a half year target
“The downward stability of the market will be solid… Concentrate on the speed of supply expansion”
[서울=뉴스핌] Reporter Myeong-yeon Kang = In order to expand the supply of insufficient housing in the city center, the 2nd and 4th measures (3080+ measures) supplemented the business feasibility and secured the supply of 503,000 households in regarding a year. It is evaluated that it has contributed to the stabilization of direct price declines by quickly responding to the rapidly increasing housing demand amid the low interest rates, expanding supply in the city center and relieving market instability.
The Ministry of Land, Infrastructure and Transport announced on the 30th that within a year following the announcement of the 2/4 measures, it had discovered candidate sites that accounted for 60% of the supply of 836 million households by 2025 (503,000 households). Among them, there are a total of 170,000 households, which are candidates for urban complexes, public redevelopment, and small-scale redevelopment, which is the size of Ilsan and Bundang new towns combined. In particular, in the case of the urban complex project, it secured a candidate site for 100,000 housing units, which is more than half of the target amount (196,000 households). 55.6% of them are located in Seoul.
| Status of candidate sites for advance subscription in 2022 (Metropolitan area) [자료=국토교통부] |
After the announcement of the 2/4 measures, the government has been pushing for supply at a speedy pace. In 9 months, the district designation of regarding 10,000 units was completed, and 4,000 units are scheduled to be supplied through the urban complex at the end of the year. Compared to the existing maintenance project, it took nine months from the discovery of a candidate site to the designation of a district, shortening it by more than four years. From designation of district to supply, the follow-up procedure is being expedited in order to reduce the period by more than 10 years with the goal of one and a half years.
Measures 2 and 4 are in progress, such as urban complex projects that promptly reorganize station areas, semi-industrial areas, and low-rise residential areas according to their characteristics, and small-scale maintenance and urban regeneration projects that improve old residential areas by preparing regional management plans. The goal is to supply a total of 736,000 households, including 196,000 and 140,000, respectively. The urban complex project secured candidate sites with 100,000 units in 76 locations including Jeungsan District 4, Yeonsinnae Station, and Banghak Station in one year, and completed district designation nine months following discovering the candidate sites. In the case of public housing sites, 38,000 households were sold last year through advance subscription, which was introduced to solve the supply lag, and this year, 70,000 households, double the number of last year, will be supplied.
Through this, it is expected that the supply lag in the housing market will be shortened, the speed of supply response to fluctuations in demand will be increased, and market instability will be resolved at an early stage. By providing bold incentives in connection with the public sector, it was possible to block speculative demand and supply a large amount of housing quickly. Influenced by the government’s supply and demand expansion, house prices in Seoul recently turned downward for the first time in a year and eight months, and is in an adjustment phase.
Minister of Land, Infrastructure and Transport Noh Hyung-wook said, “Considering macroeconomic conditions, downward pressure on house prices is expected to continue for a considerable period of time. However, we expect that the downward stabilization trend of the overall market will become more firm, and the government will focus all its efforts on expanding supply and speeding up supply.”
