Lee: “Move-in should be the benchmark for housing supply” ... Race to speed up supply in Third New Towns

[Financial News] President Lee Jae-myung visited Incheon’s Gyeyang, where the first move-ins to the Third New Towns are expected this December, and stressed that “move-in itself should be the benchmark for housing supply.” He urged the Ministry of Land, Infrastructure and Transport and the Korea Land and Housing Corporation (LH) to begin construction on about 90% of the public housing planned for the Third New Towns by 2030.
At a housing supply meeting held on site in the Incheon Gyeyang public housing district on the 20th, President Lee said, “The government typically uses construction starts as the benchmark for housing supply, but I believe the benchmark should be move-in itself so that the public can see tangible results.”
He went on to stress, “If it looks as though supply policies are not being properly implemented, public confidence in real estate policy as a whole will inevitably fall.”
Regarding the construction-start target, he said, “Please give it everything you have so that we can begin construction on most of the public housing planned for the Third New Towns—about 90%—by 2030, in line with the target we announced last August,” adding, “We have to deliver on what we said.”
He also called for all procedures to be reviewed from scratch, breaking away from established practices. President Lee said, “Please do your utmost to move up the actual construction schedule by even a single day,” and urged officials to speed up every stage, including planning and land compensation, and to revise systems and regulations that are standing in the way.
President Lee stressed, “For reasons we don’t know, permits and construction starts for new housing fell by nearly half from 2022 through last year. We need to bring forward new supply as much as possible to close that gap.”President Lee also instructed officials to fundamentally review the practice of selling land in its raw state before site development is complete, and to consider ways to dramatically increase financial incentives for faster supply.At a press briefing with reporters at Chunchugwan the previous day, he predicted that “supply will return to normal after 2028,” noting that housing supply comes with a lag of three to four years.
At the 45th Cabinet meeting, held that morning at the Blue House main building, he also said, “I hope you will break free from established practices and procedures and mount an all-out drive to speed up supply by shortening as much as possible the time required for everything from site development to the various approvals and construction starts.” He also directed officials to quickly provide high-quality public rental housing for young people and the middle class through active fiscal management.
He also called for infrastructure in Incheon’s Gyeyang to be prepared. President Lee said, “Please ensure that key infrastructure, including transportation, education and district heating, is fully ready in time for residents to move in so that they face no inconvenience.”
[email protected] Seong Seok-woo Reporter