The South Korean government is exploring various measures to increase the supply of non-apartment housing in response to rising apartment prices in Seoul and instability in the housing market. Non-apartment options, such as officetels, can be supplied more quickly than apartments, providing a rapid response to housing needs.
On May 22, Deputy Prime Minister and Minister of Finance Koo Yun-cheol stated during a meeting of real estate ministers at the Government Complex in Seoul, "Today’s meeting will review housing market trends and discuss plans for a crackdown on illegal real estate activities."
The government plans to supply 90,000 rental homes in the greater Seoul area over the next two years, from 2026 to 2027, with 66,000 of those units concentrated in regulated areas. This initiative aims to alleviate housing difficulties for young people and stabilize the market in the short term.
Koo noted that the increase in apartment sale prices in Seoul has accelerated for two consecutive weeks. He explained that the number of properties for sale has significantly decreased and that rental listings have shown slight recovery.
The government is committed to closely monitoring price fluctuations and property availability. Koo emphasized, "We will keep a vigilant eye on price changes and property trends to ensure market stability."
The immediate focus is on expanding the supply of non-apartment housing. With rising prices primarily affecting apartments, the government aims to increase the availability of housing that can be occupied quickly to distribute demand more evenly.
Koo stated, "The government is exploring various ways to expand the supply of non-apartment housing, which is a crucial part of the housing ladder." He added that non-apartment options like officetels can be supplied relatively quickly, with visible increases expected within one to two years.
Expanding non-apartment housing supply is also linked to stabilizing housing for young people. As the burden of apartment prices and rental costs increases, options for young people and newlyweds become limited. The government plans to use non-apartment housing to alleviate these challenges.
To facilitate this, the government will focus on increasing the supply of rental non-apartment units in regulated areas. Rental housing involves the government purchasing existing or newly built homes and leasing them, which is faster than direct construction and serves as a short-term supply solution.
Koo confirmed, "We plan to supply 90,000 rental homes in the greater Seoul area from 2026 to 2027, with 66,000 units designated for regulated areas."
The government is also implementing measures to accelerate the supply process. By applying modular construction methods, it aims to shorten construction time and reduce costs for developers, encouraging early project commencement. Modular construction involves pre-fabricating major structural components in factories and assembling them on-site, which can significantly reduce construction time.
For housing projects that have received permits but have not yet started construction, the government will provide close management on a project-by-project basis. This includes promptly addressing on-site challenges and ensuring that financially viable projects do not encounter funding issues.
Koo stated, "We will thoroughly manage housing projects that have received permits but have not yet begun construction, addressing on-site challenges immediately and ensuring that financially sound projects do not face funding difficulties."
The government also reaffirmed its strict stance against market disruption. It believes that alongside increasing supply, blocking speculative demand and illegal transactions is essential for achieving market stability. Koo emphasized, "We will not tolerate any actions that disrupt market order."
* This article has been translated by AI.
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