Housing measures likely to include advancing supply for third New Town

2023. 9. 25. 14:33
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The South Korean government’s housing supply measures, which will be announced before the Chuseok harvest holiday, are expected to include advancing the supply schedule and increasing the volume for the third New Town.

According to the Ministry of Land, Infrastructure, and Transport on Sunday, the government is likely to include measures such as advancing the supply schedule for the third New Town in its housing supply measures that will be announced soon.

Land Minister Won Hee-ryong said during a debate hosted by the Korea News Editors’ Association last week that “it is possible to advance the supply in the public sector, including new towns, from 2024” and that the government “will prepare measures to overcome a sharp contraction of cumulative supply over the past few months and increase the overall circulation speed.”

The government is particularly likely to expand the pre-sale supply of third New Town apartments. The move comes amid concerns that there will be a shortage of new apartments in the next two to three years due to the recent sharp decline in housing permits, construction, and supply.

The government’s measures are also expected to include allowing construction companies to sell the land designated for joint residential housing projects in advance.

The plan is to allow these sales to advance the supply schedule as construction companies that have acquired land for development face financial difficulties and worsening profitability, leading to delayed payments.

As part of the government’s efforts to boost private supply, the measures are expected to include a plan to expand real estate project financing (PF) funding to provide additional funding to businesses experiencing financial difficulties. Construction companies have been reluctant to engage in housing projects amid rising costs and labor costs.

The measures are also expected to include relaxing the housing loan guarantee conditions of the Housing Urban Guarantee Corp. to lower the guarantee threshold.

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