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Gov't to axe green restrictions in Seoul to provide 80,000 houses

Published: 08 Aug. 2024, 18:09

PARK EUN-JEE
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A sign board for development restriction located in a greenbelt zone in Naegok-dong, southern Seoul [YONHAP]

The government will remove the "greenbelt" restriction for all parts of Seoul to provide 80,000 homes in a bid to cope with the divergent real estate market as demand heavily concentrates on apartment complexes in the capital city.

In the latest housing policy announced Wednesday, the Ministry of Land, Infrastructure and Transport and related agencies released a set of plans to supply a total of 427,000 housing units in Seoul and nearby Gyeonggi regions, some of which will come as a result of the lifted restriction, as well as expedite the approval process for redevelopment.

“[The government] will lift the greenbelt designation for Seoul and nearby areas to offer land lots for 80,000 houses,” the Land Ministry said in a statement.

Finance Minister Choi Sang-mok presides over a meeting on real estate policy at the government complex in central Seoul on Thursday. [YONHAP]

“All greenbelt zones in Seoul will be temporarily turned into transaction-permitted zones while [the government] thoroughly monitors speculative demand,” it said.

This will mark the first major change since such limited development zones were completely lifted in seven small- and medium-sized cities from 2001 to 2003.

Greenbelts were first adopted in 1971 to restrict development in areas to prevent indiscriminate rapid urban expansion for environmental preservation. The designation makes approval for development projects in the zone difficult to acquire.

President Yoon Suk Yeol floated the suspension back in February, adding that other cities like UIsan, known as an industrial cluster for the petrochemical, shipbuilding and automobile industries, and other greenbelt areas will be able to see changes to make economic progress.

The housing provision will be centered on the capital city and nearby metropolitan area since other regions are reeling from a steep decline in property prices. Non-apartment types of properties, such as detached houses or low-rise multiplex housing, are also experiencing a shortfall in demand since they are susceptible to potential scams by landlords.

To address the problem, the state-run public housing corporation will buy and rent 110,000 non-apartment units.

In order to accelerate the pace of the lengthy redevelopment process, the government will allow for simultaneous development proposal and land disposal.

BY PARK EUN-JEE [[email protected]]