December 10, 2022

South Korea steps up housing plan (Minister of Finance)


Apartments and high-rise buildings in downtown Seoul (Yonhap)

Finance Minister Hong Nam-ki said on Wednesday that the government was accelerating a plan to provide housing in Seoul and other areas, with the aim of curbing high housing prices.

In February, the government unveiled the plan that relaxed building regulations and supported redevelopment projects in urban areas to increase the number of new homes to 836,000 nationwide over the next four years.

Some residents of Seoul’s designated areas have already voted in favor of the redevelopment projects, making it easier to start construction of new homes earlier than expected, Hong said in a meeting with relevant ministers.

February’s housing policy focuses on increasing the supply of housing in the Seoul metropolitan area and other major cities in order to stabilize the overheated real estate market, in what could be a radical departure from the imposition of a series of stricter regulations.

The procurement plan includes 323,000 new units in Seoul, the hotspot of the real estate frenzy, and 293,000 in surrounding Gyeonggi province by 2025, officials said.

With the housing plans announced last year, the number of new units in the greater Seoul area, home to nearly half of the country’s 52 million people, will rise to more than 2 million, the largest plan in the world. supply under the Moon Jae-in administration. noted.

The average price of 83-square-meter apartments in Seoul reached 1.2 billion won ($ 1.1 million) last year, an 82% jump over the past four years under the Moon administration. according to data from the civic group Citizens’ Coalition for Economic Justice.

Rising house prices and strict lending rules have made it more difficult not only for low-income families but also for high-income earners to buy a house in Seoul without the financial support of their parents. (Yonhap)