Minister visits Mapo-gu housing site to underscore supply push
"Housing permits and ground-breakings are increasing, centered on Seoul, but the effect has not yet been felt across the broader metropolitan area. We will move faster to ensure permits lead to ground-breakings, and ground-breakings lead to move-ins."
Minister of Land, Infrastructure and Transport Hong Ji-sun made the remarks Wednesday while inspecting supply conditions at a 132-unit new-build purchase-rental housing site in Seongsan-dong, Mapo-gu, Seoul.
Hong added that new-build purchase-rental housing is "an important policy tool that uses private-sector capacity to supply housing in urban areas within a relatively short time frame, while allowing the public sector to operate it as rental housing," and said supply speed is paramount for stabilizing the jeonse and monthly rent market, reaffirming the government's focus on accelerating ground-breakings and move-ins.
Hong said the government had laid out measures to boost developer participation through a "supplementary plan for purchase-rental housing supply" on May 22 and a "rapid housing supply plan" on Aug. 13, and pledged to manage progress and resolve on-the-ground difficulties so that those policy improvements translate into actual supply expansion. The government has previously decided to raise the acquisition tax exemption rate on land and buildings for construction developers to 70 percent next year, and to allow cost-based appraisals that reflect construction cost increases when calculating the purchase price for metropolitan area units.
Hong also said that stabilizing youth housing goes beyond simply increasing supply. "We must provide homes in places where young people actually want to live, where they can feel safe. Please make sure the ground-breaking and contract targets planned through year-end are met without delay, and that housing where residents can live comfortably is supplied quickly," she said.
Wednesday's visit was Hong's third inspection of a housing supply site, following a trip to the Bucheon Daejang district of the third-generation new towns on Sept. 22 and to a private development site in Godeok Gangil on Oct. 8. The project, set to be completed this month, is located about a 10-minute walk from Mapo-gu Office Station on subway Line 6 and Gajwa Station on the Gyeongui-Jungang Line. At the site, Hong received a briefing from the Korea Land and Housing Corp. on this year's ground-breaking and contract performance for new-build purchase-rental housing and the within-year supply plan, then toured units scheduled for occupancy to check their layout, finishing materials and storage space.
smh@heraldcorp.com
