Government to accelerate housing supply with deregulation and financial aid

The South Korean government is preparing to unveil a new set of housing supply measures this week, aiming to accelerate both public and private development projects. The anticipated package is expected to include significant regulatory reforms to facilitate quicker construction and provide crucial financial support to developers.

Officials indicate that the upcoming measures will address the current housing supply shortage, which has been exacerbated by a notable decrease in completed housing units in the first half of the year. In Seoul alone, apartment completions fell by more than half compared to the same period last year. The government recognizes the urgent need to demonstrate tangible supply results to stabilize the overheated real estate market, particularly impacting both sales and rental prices.

A key focus will be on enhancing the stability and speed of private non-apartment housing projects. These include multi-family homes and urban living facilities, which generally have shorter administrative and construction timelines compared to apartments. The government plans to further expand supply in this segment, building on its previous commitment to acquire 90,000 non-apartment rental units in the Seoul metropolitan area by next year.

Additionally, the government is exploring measures to increase apartment supply in densely populated urban areas. This includes potentially reviving and expanding the 'Urban Public Housing Composite Project,' which offers streamlined procedures and preferential zoning ratios. The government is reportedly considering designating new candidate areas in Seoul for this project, potentially adding around 20,000 units. Plans for additional urban public housing on public land are also expected.

Speculation is also mounting regarding the potential release of development-restricted greenbelt areas in Seoul for housing construction. Several sites previously identified as potential locations are reportedly under consideration. However, the development of greenbelt land requires cooperation from the Seoul Metropolitan Government and involves lengthy environmental assessments and land compensation processes, making timely construction challenging within the current administration's term.