Construction has begun on approximately 99,000 homes in greater Seoul this year, reaching only 37% of the annual target. The government now projects that between 218,000 and 235,000 units will break ground by year-end, falling short of its goal. The Ministry of Land, Infrastructure and Transport released the updated outlook amid concerns over rising home prices and a tightening rental market.
The sluggish pace of new home construction in greater Seoul raises concerns about housing affordability and supply shortages, potentially impacting property prices and rental markets in the region.
Construction has begun on approximately 99,000 homes in greater Seoul so far this year, falling short of the annual target. The government now anticipates that between 218,000 and 235,000 units will break ground by year-end, representing about 81-88 percent of the goal.
The Ministry of Land, Infrastructure and Transport and the Office for Government Policy Coordination released the updated housing supply outlook on Friday amid growing concerns over rising home prices and a tightening rental market in Seoul and surrounding areas. The government had previously set a target of starting construction on 268,000 homes this year, including 62,000 public housing units.
To accelerate housing supply, the government plans to increase public housing construction, purchase privately built homes for public use, and expedite redevelopment projects in existing residential areas.
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