Seoul metropolitan area to see 110,000 non-apartment units by 2030 with regulatory easing and loan expansion

South Korea's government has announced plans to significantly increase the supply of non-apartment housing in the Seoul metropolitan area, aiming to deliver 110,000 units by 2030. This initiative involves easing construction regulations and expanding financial support for developers of new non-apartment buildings, a sector that has seen a considerable decline due to rising construction costs and concerns stemming from past fraudulent real estate dealings.

The Ministry of Land, Infrastructure, and Transport detailed measures to promote the construction of 'urban living homes' (doshihyeong saenghwalju-taek), premium studio apartments, and officetels. For urban living homes, the government will relax regulations on the number of units allowed, increasing the limit from 300 to 500 in mixed-use zones and up to 700 near transit hubs. Parking space requirements, a common hurdle, will also be eased by 50-70% through local ordinances. The target is to permit 41,000 units over the next two years and 77,000 by 2030.

Additionally, the government will encourage the conversion of vacant commercial and office spaces into premium studio apartments and officetels through a 'non-residential remodeling project.' The Korea Land and Housing Corporation (LH) will lead by example, remodeling 2,000 units this year and expanding the program. Standardized floor plans will be made available to other developers. The conversion of officetels within industrial complexes will also be permitted temporarily until next year. This effort aims to add 15,000 units in two years and over 33,000 by 2030.

Financial support for non-apartment projects will be strengthened. The housing fund will offer increased project-based loans for urban living homes, raising the limit per unit from 70 million won to 110 million won for units under 60 square meters, with a reduced interest rate. Loans for larger units (60-85 square meters) will also increase from 70 million won to 120 million won. The Housing & Urban Guarantee Corporation (HUG) will introduce special project financing and pre-sale guarantee programs tailored for non-apartment projects in the Seoul metropolitan area.

To address on-site challenges, a 'Field Difficulty Resolution Support Center' has been established. This center will identify and resolve obstacles hindering construction, particularly for projects in Seoul and Gyeonggi Province that are already facing significant delays. The government aims to expedite the construction process and ensure the timely delivery of these much-needed housing units.

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In Seoul and Gyeonggi regulatory areas, a total of 100,000 units are being delayed by more than a year compared to the average construction period. We are establishing a Field Difficulty Resolution Support Center to identify obstacles to commencement for each project and resolve them immediately.