The Ministry of Land, Infrastructure and Transport in South Korea announced on Tuesday that the nation will be supplying 120,000 public homes in addition to the 2.7 million new homes planned for 2027 in order to combat the decreased supply of private-sector housing caused by higher lending rates.
Last August, the government declared a public home supply plan for the 2023-2027 period that included permitting private enterprises to join in downtown development projects and loosening regulations for redevelopment and reconstruction.
“The 2.7 million home plan is expected to help ease the lack of homes in preferred residential areas in the mid and long term. However, the market conditions for new homes (in the private sector) began to deteriorate in the second half of last year,” the ministry stated.
This file photo taken Aug. 15, 2022, shows the Hyundai apartment complex in Apgujeong, southern Seoul. (Yonhap)
In order to balance the dwindling private-sector housing, the government will be offering 120,000 public homes, including 30,000 in large residential towns close to Seoul and 85,000 in newly developed areas. About 30,000 of these homes are expected to be available as soon as next year, depending on construction permits, with the remainder to be supplied by 2027.
The 2.7 million home project is intended to stabilize the real estate market by providing 1.58 million homes in Seoul and metropolitan areas and 1.12 million houses in other provinces between 2023 and 2027. This year, the government aims to provide 470,000 public homes and will increase the number to more than 1 million next year.
Despite the government’s efforts to control prices with measures such as tax hikes and stricter lending rules, home prices have been steadily rising.
kyongae.choi@yna.co.kr
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