Ministry of Land, Infrastructure and Transport Vice Minister Kim Ei-tak put heads together with the private sector to solve the shortage of dwellings supply in the city center.
The Ministry of Land, Infrastructure and Transport said Vice Minister Kim held a policy meeting on the 27th at the Korea Housing Builders Association in Yeongdeungpo District, Seoul, with private dwellings developers who build urban-style small dwellings and officetels.
The meeting was arranged to discuss public-private cooperation so that the plan announced on the day to boost non-apartment supply can be smoothly embedded in actual construction sites.
At the meeting, the Vice Minister said, "Supply vitality in the non-apartment market, including urban-style small dwellings, is greatly diminished due to unstable materials supply, a rigid financing environment, and various regulations," adding, "We will swiftly remove regulatory stumbling blocks until the emergency in dwellings supply is resolved, and we will provide thicker support, including expanding construction financing and operating a support center to address on-site difficulties."
As for institutional improvements to revitalize urban-style small dwellings, easing the cap on the number of households tied at 300 to allow up to 500 units, so more homes can be built, was cited first. In particular, areas near transit stations with convenient transportation will be temporarily opened to allow up to 700 units. The height limit will also be adjusted upward from the current five stories to six so buildings can go higher.
Standards for mandatory facilities that had undermined project profitability will also be eased. If there is already a similar or the same type of community facility for residents within a 300-meter radius of the proposed building, no additional installation is required. Solutions to chronic parking shortages were also included. While expanding the autonomy of local government ordinance so parking standards can be set to fit local characteristics, a foundation was laid to actively introduce advanced smart parking systems such as robotic parking and automatic valet parking.
To help industries facing funding shortages, the housing & urban fund will nearly double the loan limit per room (ho), from the current 70 million won to as much as 110 million to 120 million won, and it will cut the lending rate by 0.4 percentage points to ease interest burdens.
The private sector noted that "the non-apartment market is more sensitive to regulation than apartments," and requested that follow-up measures be carried out quickly so the effects of this institutional improvement can appear swiftly in the market.
In response, the Vice Minister said, "Non-apartments such as urban-style small dwellings and officetels are an important dwellings supply source that can secure living space in line with demand in city centers quickly and efficiently," adding, "To respond to jeonwolse demand from one- and two-person households and to stabilize housing for low-income people, supply in the non-apartment market must proceed smoothly as well as apartments."
Wrapping up the meeting, the Vice Minister added, "The government and the private sector will become 'one team,' communicating and cooperating closely to concentrate all capabilities so the shortage of urban dwellings supply can be resolved quickly."