The government said Thursday it plans to announce new residential land sites capable of supplying a total of 80,000 housing units in the capital region by lifting greenbelt restrictions.

The government also vowed to promote reconstruction and redevelopment projects in Seoul and the surrounding regions by easing regulations and extending various tax incentives, which is expected to supply more than 427,000 homes combined by 2029.

The move to boost home supplies came as housing prices, particularly apartment prices, have been rising at a fast clip in Seoul and the adjacent regions recently due to short supplies, real estate project financing issues and the aftermath of home rental scams that mostly affected non-apartment homes.

Initially, the government will announce new residential sites capable of supplying 50,000 housing units, including more than 10,000 units in Seoul. An additional 30,000 units will be announced next year.

In the previous housing supply measure announced in January, the government ann
ounced a plan to lift greenbelt restrictions to supply 20,000 housing units in the metropolitan area.

In the latest announcement, the total supply volume has been increased fourfold, while officials also made clear that greenbelt areas to be lifted include sites in and around Seoul.

Greenbelt zones in Seoul have not been lifted on a large scale since the Lee Myung-bak administration lifted part of the previously restricted zones in southern Seoul from 2009 to 2012.

An additional 20,000 new homes will be built at new towns that the government is planning to build in the metropolitan areas.

The government plans to launch a project to renew old towns in Gyeonggi Province and other regions in 2027 by drawing up a detailed road map this year.

It will also buy more than 110,000 new non-apartment homes for public supply, according to the land ministry.

Another key way of boosting housing supply is facilitating the reconstruction of old apartments and urban redevelopment projects, which is expected to make 217,
000 new homes available.

For the goal, the government will push to enact a special law and simplify administrative procedures for reconstruction and redevelopment projects.

The plan also includes extending various tax incentives for single-home owners and abolishing reconstruction charges.

The market for housing reconstruction and redevelopment has lost steam recently as expected profitability has fallen amid high construction costs, long and arduous procedures, and disputes among parties concerned over the course.

“It is crucial to stabilize the real estate market by providing enough supplies and managing liquidity at an appropriate level,” Finance Minister Choi Sang-mok said during a meeting of real estate-related ministers.

In response to rising household debts, the government will gradually tighten lending regulations by implementing the stressed debt service ratio rules and other measures starting September.

In June alone, household loans extended by the country’s top five commercial lenders surged
more than 5.3 trillion won, the sharpest jump in nearly three years.

A governmentwide task force will conduct inspections into the real estate market from August through the end of this year to crack down on real estate speculation, according to the finance ministry.

“The government will enhance market monitoring and analysis of household debts and other risk factors, and will come up with measures to strengthen regulations to ensure longer-term financial soundness,” Choi said.

Source : Yonhap News Agency