Government to supply 236,000 affordable housing units through 2029

Economy

Published: 18 Jul. 2024, 17:39

Government to supply 236,000 affordable housing units through 2029

Finance Minister Choi Sang-mok, left, speaks during a ministerial meeting on the real estate market held at the government complex in central Seoul on Thursday, with Land Minister Park Sang-woo in attendance. [MINISTRY OF ECONOMY AND FINANCE]

The government will supply 236,000 housing units at “significantly lower prices than market prices” through 2029.

The announcement was made by Finance Minister Choi Sang-mok on Thursday during a ministerial meeting on the real estate market held at the government complex in central Seoul.

“The government will provide a total of 236,000 housing units at significantly lower prices compared to the market prices by 2029, mainly in ‘the third new town’ areas with favorable living conditions,” said Choi in his opening remarks.

Regions involved in the government’s “third new town” program include Wangsook in Namyangju, Gyeonggi; Gyosan in Hanam, Gyeonggi; and others in the greater Seoul area.

Choi vowed to “significantly expand the housing supply to relieve worries for the younger generation and those who do not own any real estate.”

Moreover, at least 10,000 public units will be added to the previously announced 12,000 units for the government housing lease program in order to stabilize the jeonse, or lump-sum deposit, market. Of those, 54,000 units will be provided in the greater Seoul area where jeonse prices have been soaring.

The finance minister also reaffirmed the plan to lift regulations on the so-called greenbelt zone to supply an additional 20,000 housing units in the greater Seoul area within the latter half of the year, which was announced by the Ministry of Land, Infrastructure and Transport earlier this month.

The latest economic ministerial meeting on the real estate market was the first occasion in 10 months. The meeting comes as real estate prices in Seoul continue to rise on the back of growing anticipation of lower interest rates.

Apartment prices in Seoul have been on the rise for 17 consecutive weeks, with the pace of weekly increases growing as of late.

The average selling price of apartments in Seoul from July 9 to 15 increased 0.28 percent from a week prior, according to the latest weekly data compiled by the Korea Real Estate Board, the steepest increase since September 2018.

Choi noted that “the volatility in the real estate market has been growing, particularly in some apartments in Seoul and the surrounding area,” yet assured that “the current property market is not heading toward an overheated situation” as the prices of non-apartment units and properties in non-Seoul regions have declined.

But the minister noted that “as the upward trend in housing prices has been spreading in Seoul and its surrounding regions, the government has bolstered monitoring efforts.”

BY SHIN HA-NEE [shin.hanee@joongang.co.kr]