Housing Supply Push: 130,000 More Units Expected to Break Ground by Year-End

[Financial News] The government said it plans to start construction on about 130,000 more housing units by the end of this year, raising the total to around 81% of its original target of 268,000 units. It also aims to speed up supply by announcing offerings for 10,000 public rental housing units in the fourth quarter.
Kim Yi-tak, First Vice Minister of Land, Infrastructure and Transport, made the announcement at the first housing supply policy briefing at Government Complex Seoul on the 16th.
The government said that by mid-October, construction had begun on at least 99,000 units, or 37% of this year’s target of 268,000. In the public sector, construction had begun on 16,200 units, or 26% of the 62,000-unit target, while the private sector had started construction on 17,000 units, or 23.6% of its 72,000-unit target, by September. The government said, “We are also actively pursuing institutional improvements to quickly resolve on-site regulations and disputes that are impeding projects, in order to accelerate construction starts on redevelopment projects.”
It is also providing a package of support for institutional improvements in areas including taxation, finance and construction to help revive private-sector supply, including that of general housing, and is moving ahead with plans to establish an integrated housing supply support center by the end of the year.
Depending on private-sector performance, the government expects construction to begin on 218,000 to 235,000 units by year-end, or 81% to 88% of the 268,000-unit target. Public housing is planned to account for the largest share, at 45,000 units, and the government intends to ensure that construction proceeds without disruption during the remaining period. A government official said, “The concentration of construction starts toward the end of the year reflects a tendency for activity to be somewhat skewed toward the second half, as we have set ambitious targets since last year. We are trying to spread the volume more evenly throughout the year going forward. We are holding working-level discussions with the Seoul Metropolitan Government.”
In the fourth quarter, the government will announce offerings for about 10,000 public housing units for sale, including units in the Third New Towns. The locations include Goyang Changneung (1,100 units), Namyangju Wangsuk (400 units), Godeok-Gangil (1,300 units), Pyeongtaek Godeok (2,100 units) and Gwanggyo New Town (600 units). It also plans to issue calls for applications for at least 5,000 public rental housing units by year-end. These include Gwacheon Knowledge Information Town (1,400 units), Guri Galmae Station Area (900 units) and Incheon Bupyeong (400 units).
The government plans to hold briefings on the housing supply situation every two weeks to give the public a clearer sense of progress, from construction starts to sales and move-ins. 

[email protected] Jeong Gyeong-su, Choi Ga-yeong Reporter