(2nd LD) Gov't aims to supply over 230,000 additional homes in Seoul metropolitan area to tame housing prices

Seoul's government announced on Thursday a plan to build over 230,000 new homes in the metropolitan area, aiming to address the city's high housing prices. The Ministry of Land, Infrastructure and Transport outlined a comprehensive package to expand housing supply and stabilize both rental and sales markets, focusing on Seoul and other high-demand regions in the capital region.

The new measures complement the Lee Jae Myung administration's housing supply plan, which targets the construction of 1.35 million homes in Seoul, Incheon, and Gyeonggi Province by 2030. Approximately 100,000 of the newly announced homes will be developed in designated public housing districts, including 1,000 homes in Gangseo, 21,700 in Namyangju, and 4,500 in Gwangju, Gyeonggi Province.

The government plans to significantly reduce the time from site announcement to construction commencement for new housing sites, cutting the period from 68 to 37 months through a fast-track development model. Funds will also support previously announced plans to construct over 60,000 homes on underutilized sites in Seoul and other well-connected areas, such as a military golf course in Seoul and former government sites in Gwacheon, south of Seoul.

Construction on the Seoul golf course site is set to begin by late 2029 after a review of potential impacts on nearby ancient tombs.

To expedite urban housing construction, the government introduced tax and financial incentives for private-sector projects and non-apartment housing, easing regulations on private developers, who make up more than 80% of the housing supply in the Seoul metropolitan area. Land Minister Kim Yun-duk emphasized the importance of laying a solid foundation for housing supply to stabilize the market.

Seoul's government opposes lifting greenbelt restrictions for housing, maintaining the need to preserve these areas for future generations. While the city expressed regret over the ministry's lack of adequate consultation prior to the announcement, it aligned with the broader drive to expand the housing supply and called for further easing of regulations.

The latest announcement, combined with earlier plans to begin construction on 1.35 million homes by 2030 and additional supply measures from January, will see the government's overall housing supply target exceed 1.5 million units.