Of the 60 idle sites in Seoul under review by the Ministry of Land, Infrastructure and Transport (MOLIT), only about half are suitable for supplying dwellings. Half of the sites already have utilization plans in place or face opposition from related agencies, making it difficult for MOLIT to ignore that and forcibly demand they "hand over the land." Concerns are mounting that the dwellings supply plan may fall short of stabilizing the overheated real estate market.
According to the real estate industry on the 9th, the Ministry of Land, Infrastructure and Transport (MOLIT) is consulting with local governments including the Seoul Metropolitan Government to finalize new housing sites in order to announce a dwellings supply plan in mid-month. In Seoul, where there are no large housing sites, idle urban land and outdated government office sites are being considered. Minister Kim Yun-duk of MOLIT met with reporters right after the signboard unveiling for the Dwellings Supply Promotion Headquarters on the 2nd and said, "We are preparing (additional supply measures) focusing on idle sites and outdated government offices in Seoul," adding, "Supply cannot just go 'ta-da' and appear all at once, so we are continuously combing through Seoul and the greater metropolitan area as we prepare for the announcement."
Local governments are gathering opinions from the district offices with jurisdiction over the target sites and related agencies on whether to develop the land into housing sites and relaying them to MOLIT. A Seoul Metropolitan Government official said, "About half of the 60 target sites could be used to supply dwellings, but the other half already have utilization plans by the agencies in charge or require further consultation." While MOLIT is in charge of supplying dwellings, development licensing authority lies with local government heads, making it difficult to finalize the list of target sites.
The idle sites in central Seoul currently being mentioned include Taereung Country Club, a military golf course in Nowon District, the Korea National Diplomatic Academy in Seocho District, and the Seoul Regional Public Procurement Service, among others. These sites were among the new housing sites included in the 8·4 measures released in 2020 by Moon Jae-in's administration, but the plan to supply dwellings effectively collapsed due to opposition from local residents and district offices. Of the roughly 20 sites selected at the time, only one has actually begun construction: the "Seoul Housing and Urban Development Corporation (SH) unsold land in Magok."
Because of this, sites with sharply conflicting interests are increasingly likely to be excluded from the final list. An industry official said, "Many national properties that are easier to negotiate on will likely be included," adding, "I understand that using leftover parcels in core areas is also under review."
In the industry, some say the government's "all-in" dwellings supply will struggle to meet market demand. Seo Jin-hyung, a professor in the real estate and legal studies department at Kwangwoon University, said, "The government's supply plan is fixated on public housing, so its impact on the market will likely be limited," adding, "We need a two-track approach that supplies both public housing and private housing." Seo said, "We need to invigorate redevelopment projects and reform the tax system to induce listings from owners of multiple homes."