Gov’t to supply 236,000 homes at lower prices by 2029

Jul 19, 2024, 12:28 am

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Deputy Prime Minister and Minister of Economy and Finance Choi Sang-mok speaks as he presides over a meeting of real estate policy-related ministers at the Government Complex Seoul on July 18, 2024./ Source: Yonhap News

AsiaToday reporter Kim Ji-hye

The government has decided to supply new homes in an effort to curb excessive housing price hikes mainly in Seoul and the capital area. It decided to supply 236,000 homes below market prices in newly built new towns and lift green-belt restrictions to supply more than 20,000 housing units in the Seoul capital area. It will also come up with additional housing supply measures next month.

Deputy Prime Minister and Minister of Economy and Finance Choi Sang-mok made the remarks during a meeting of real estate-related ministers in Government Complex Seoul on Thursday.

“The real estate market hot become more volatile as housing prices are rising in Seoul and surrounding areas, but the market is not overheated on the whole,” Choi said. “As housing prices are rising in Seoul and surrounding areas, the government takes the current situation seriously and is enhancing the monitoring.”

According to the Korea Real Estate Board, apartment transaction prices in Seoul from July 9 to 15 rose 0.28 percent from the previous week, the highest increase since the second week of September 2018, when the growth rate was 0.45 percent.

As apartment prices in Seoul show no signs of declining this year, the government plans to stabilize the market by supplying new housing units. It plans to supply 236,000 homes at prices lower than market prices in newly built new towns or other areas having desirable living conditions by 2029, while providing more than 20,000 additional housing units in the Seoul capital area by lifting green-belt restrictions.

As a part of measure to stabilize the rental market, the government will add at least 10,000 additional public units to the previously announced 12,000 units for its housing lease program. Among them, 54,000 units will be concentrated in the Seoul capital area in the second half of the year. The government will also announce plans to expand the supply of additional housing units next month.

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