The government has announced plans to supply 252,000 public dwellings next year, starting construction on 70,000 units, which is 20,000 more than this year. This year, a total of 52,000 units are set to begin construction, with 129,000 units in the process of obtaining permits.

The city view seen from Namsan, Seoul /Courtesy of News1

The Ministry of Land, Infrastructure and Transport held a meeting on the afternoon of the 12th at the Korea Land and Housing Corporation (LH) Seoul Headquarters with LH, Seoul Housing and Communities Corporation (SH), Gyeonggi Housing and Communities Corporation (GH), Incheon Urban Corporation (iH), Housing and Urban Guarantee Corporation (HUG), and Korea Real Estate Agency (Korea Real Estate Agency). This meeting was organized to review this year's housing supply performance for each public agency and intensively discuss next year's supply plans.

The Ministry of Land, Infrastructure and Transport plans to start construction on 51,000 public dwellings (public sales and public rental) this year and has set a goal of obtaining permits for 140,000 units.

According to the review of this year's supply performance, construction has completed orders for a total of 52,000 units, nearly three times the record of 18,000 units from last year. Most construction companies have already been selected, and the last procedures for starting construction within the year are currently being completed, according to a Ministry official.

Most of the 129,000 units for permits, which LH, SH, GH, and iH are managing, have completed applications and are currently undergoing approval processes to meet their targets. By the end of the year, performance is expected to be aggregated, including basic local government maintenance units.

The Ministry of Land, Infrastructure and Transport plans to mobilize all resources in collaboration with local governments to achieve a permit goal of 140,000 units, which is double last year's target of 78,000 units, by the end of the year.

Next year's public housing supply is being pursued with the goal of providing a record-high 252,000 units. This includes 140,000 units for construction-type public housing, 67,000 rental purchases, and 45,000 lease rentals.

The construction-type public housing is set to promote a total of 140,000 units for permits, adding 5,000 units to the initial plan of 135,000 units. They also plan to start construction on more than 70,000 units, which is an increase of 20,000 units from this year.

To rapidly improve the housing supply situation, a policy has been established to promote permit applications or construction for more than 20% of the planned quantity within the first half of the year.

Next year, over 110,000 new rental purchases will be supplied, primarily centered around the metropolitan area. As of early December this year, applications for more than 210,000 new purchase agreements have been submitted. Currently, the follow-up procedures, including purchase reviews, are underway.

New purchase agreements are a business model that can quickly supply high-quality dwellings similar to apartments, contribute to the recovery of the local construction economy, and efficiently utilize vacant lots and aging commercial properties and hotels in urban areas.

Plans are in place to supply primarily medium-sized housing units, including apartments in high-demand areas near subway stations. A Ministry official noted that next year, 48,000 apartments are expected to be available for move-in in Seoul, which is a significant increase compared to the usual 38,000 units.

In the case of public land such as the third new city, an additional 17,000 units have already been secured this year through changes in district plans. Next year, an additional 18,000 units will be secured, aiming for a total of 50,000 units to be secured by 2027 through optimizing land use.

In addition to supplying public housing, private supply conditions will also be actively supported. HUG will assist private financing through project financing guarantees. The Real Estate Agency plans to prevent and resolve construction cost disputes through newly established support teams for construction cost verification and consultation this year.

Minister of Land, Infrastructure and Transport Park Sang-woo said, “We must do our best to mitigate housing polarization, which is critical to stabilizing people's livelihoods, and public institutions must play an active role in recovering the construction economy.” He added, “During the remaining month, please carefully manage the progress to ensure there are no obstacles in achieving this year's supply target.”