President Lee Jae-myung has labeled the delays in construction for existing public housing sites, including the third new town project, as a "serious problem" and has called for expedited administrative procedures. He expressed caution regarding demands to ease regulations on private redevelopment and reconstruction projects, citing concerns that such measures could stimulate housing prices. Instead, he emphasized a focus on accelerating the pace of public land development and enhancing public-led supply.
During the 'National Forum on Real Estate Policy' held on July 23 in Yeouido, Seoul, President Lee remarked on the delays in construction for previously announced areas, stating, "This is indeed a serious issue." He added, "The administrative speed is too slow," and suggested that if necessary, regulations could be changed or procedures could be conducted in parallel to reduce time.
He questioned, "Can we really afford to take over 60 months?" and noted that efforts are underway to reduce this timeframe by more than half. The aim is to accelerate the connection between announced public land supply plans and actual construction and occupancy.
Conversely, President Lee adopted a cautious stance on calls to ease regulations to stimulate redevelopment and reconstruction. He pointed out that increasing the floor area ratio in reconstruction does not significantly increase the number of housing units, and in some cases, redevelopment can lead to a decrease in the total number of units post-project. He emphasized the need for careful consideration of whether easing regulations would stabilize the housing market or contribute to soaring prices.
This statement appears to distance itself from market demands for increased urban housing supply through relaxed redevelopment and reconstruction regulations. Previously, voices from the Seoul city government and the construction industry have called for expanded floor area incentives, flexible zoning, and expedited project procedures to boost urban supply.
President Lee also expressed a commitment to enhancing public-led supply. He mentioned plans to move away from the past focus on small public rental units of 8 to 12 pyeong (approximately 264 to 396 square feet) for low-income households, proposing instead to supply high-quality public rentals of 25 to 30 pyeong (approximately 825 to 990 square feet) in transit-oriented areas. This initiative aims to provide housing that the middle class can occupy long-term, creating a housing ladder for those seeking to own homes.
He indicated that he would also consider ways to utilize underused and vacant land in urban areas. Addressing concerns about the contraction of private rentals, he noted, "With high demand and prices for sales, why would we want to rent out new construction sites?" He identified the lack of available land for new construction as a fundamental issue. When expert panelists raised the need to convert non-residential and vacant land for residential use, he expressed willingness to explore this option.
Meanwhile, Jin Mi-yun, a professor of real estate at Myongji University, who spoke at the forum, stated, "Since 2022, high interest rates and soaring construction costs have led to a significant decline in permits and construction starts, disrupting the supply pipeline." She recommended selective financial and tax support for feasible construction projects and urged the prompt reorganization of overlapping regulatory frameworks, such as land transaction permission zones.
* This article has been translated by AI.
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