Key facts
- South Korea's government plans to supply over 230,000 additional homes in the Seoul metropolitan area.
- The plan aims to stabilize high housing prices and address public discontent over real estate policy.
- The measures include accelerating public housing projects, developing underutilized land, and easing greenbelt restrictions.
- Support will be provided to private sector developers, who account for over 80% of housing supply in the capital area.
- The announcement follows a property tax overhaul proposal and comes amid rising Seoul apartment prices.
The South Korean government, under the Lee Jae Myung administration, is intensifying its focus on increasing housing supply to combat soaring property prices in the Seoul metropolitan area. The administration announced plans to supply over 230,000 additional homes, including approximately 100,000 units on newly designated sites, adding to the existing goal of starting construction on 1.35 million homes by 2030.
This initiative is part of a dual strategy that includes curbing demand through measures like a proposed property tax overhaul, which would impose heavier burdens on owners of expensive homes and investment properties. The government aims to accelerate public housing projects, develop underutilized public land, ease greenbelt restrictions, and provide support for private sector development, which accounts for over 80% of housing supply in the capital region.
The push for increased supply comes as housing affordability has become a critical political issue, particularly for younger Koreans. Seoul apartment prices have seen a significant rise, contributing to public discontent and impacting President Lee's approval ratings. The government acknowledges the challenge of materializing new housing supply, with Land Minister Kim Yun-duk noting that homes cannot be produced overnight.