Minister Kim Yun-duk of the Ministry of Land, Infrastructure and Transport said the government will reflect on-the-ground views from dwellings supply sites as much as possible in the real estate measures it is preparing. Experts also proposed that financial and tax support and revitalization of redevelopment projects are needed to ease bottlenecks in dwelling projects that receive permits but fail to move to groundbreaking.
The Minister said at the "listening forum on plans to expand dwellings supply for stable housing for the public," held on the 14th at Jeongdong1928 Art Center in Jung-gu, Seoul, "This time, we will do our best to truly resolve the real estate problem."
The Minister sat at the same round table as the attendees instead of taking the podium that day. In the opening remarks, the Minister presented "real listening" as the core keyword of this forum.
The Minister said, "Today, officials of the Ministry of Land, Infrastructure and Transport (MOLIT), including me, decided not to say anything except for greetings," adding, "Whenever we feel like speaking, we will drink coffee and eat cookies and listen to what you have to say." The Minister added, "We will reflect the valuable opinions raised today as much as possible in the government's real estate measures."
Jin Mi-yun, a professor at Myongji University who delivered the keynote that day, presented seven agenda items for housing stability: ▲ financial and tax support for new-build dwellings supply ▲ revitalization of private redevelopment projects ▲ expansion of dwellings supply in key areas and faster project timelines ▲ flexible urban and architectural regulations ▲ diversification of lessor entities and methods for rental dwellings supply ▲ strengthened role of the institutional sector ▲ easing the burden of housing costs.
Professor Jin stressed that the supply of dwellings must proceed smoothly through a series of stages from permitting to groundbreaking, pre-sales, completion, and move-in. Professor Jin said, "We are currently experiencing severe bottlenecks where projects cannot move to groundbreaking even after obtaining permits," adding, "As the supply flow is blocked, a vicious cycle is emerging in which housing costs rise for low-income households without dwellings."
Professor Jin added that restoring the "pipeline" of dwellings supply will require financial and tax support. Only by reducing situations in which business sites that have obtained permits cannot break ground due to funding issues or deteriorating profitability can this lead to actual dwellings supply.
Professor Jin noted that with a rising share of aged dwellings, revitalizing urban redevelopment projects is an unavoidable task. Professor Jin said, "We need to examine how much additional floor area ratio grants and regulatory easing have actually led to groundbreaking and completion," adding, "We also need to check how many dwellings at affordable levels have been supplied through public institutions."
Regarding the use of idle sites in central Seoul, such as Yongsan and the Seoul Medical Center site, Professor Jin stressed that, beyond the volume of supply, the targets and methods of supply must be considered together. Professor Jin said, "We should not focus only on quantitative expansion by simply increasing the number of floors or boosting floor area ratios to build more homes," adding, "Qualitative deliberation is needed in tandem on whom to supply to and by what method."
A proposal also emerged to diversify the structure of the lease market. Professor Jin said, "Between the jeonse and monthly rent market supplied by multiple-home owners and public rentals, a 'third type of long-term rental' is needed."
Professor Jin also proposed support measures that take into account actual housing costs, including not only monthly rent but also maintenance fees. Professor Jin said, "We should also consider measures to link support for actual housing costs, including monthly rent and maintenance fees, to income."
The forum was held to hear opinions from experts, industry, and citizens before the government prepares real estate policies and plans to expand dwellings supply. The Ministry of Land, Infrastructure and Transport (MOLIT) plans to reflect the opinions raised at the forum in the real estate measures the government is preparing.
Real estate policy forums by government ministries will be held for three consecutive days. Following MOLIT's forum on dwellings supply, the Financial Services Commission will hold a forum on finance on the 15th, and the Ministry of Finance and Economy will hold a forum on taxation on the 16th. On the 23rd, a comprehensive real estate policy forum presided over by the president is scheduled.
At the forum, Lee Yong-man, an emeritus professor in the Department of Real Estate at Hansung University, served as chair. Experts and industry and citizen panelists attended, including Assistant Professor Lee Hu-bin of the Department of Real Estate at Kangwon National University, Park Cheon-gyu, head of the Housing and Real Estate Research Division at the Korea Research Institute for Human Settlements (KRIHS), Kim Deok-rae, senior research fellow at the Korea Housing Institute, Kim Hyo-seon, chief real estate expert at KB Kookmin Bank, and Choi Eun-young, director of the Korea Urban Research Institute.