16th August 2022 – (Seoul) South Korea will supply 2.7 million new homes for the next five years in a bid to stabilise the real estate market, the land ministry said Tuesday.
A total of 2.7 million new homes will be supplied across the country from 2023 and 2027 by alleviating regulations on redevelopment and reconstruction and offering incentives to the private sector’s development projects, according to the Ministry of Land, Infrastructure and Transport.
The government planned to supply 1.58 million homes in the Seoul metropolitan area, including 500,000 homes in Seoul, as well as 1.12 million houses in other cities and provinces.
Of the total, 520,000 homes will be supplied via redevelopment, reconstruction and downtown development projects, and 880,000 public homes will be offered in the metropolitan area. The remaining 1.3 million houses will be available through the private sector’s development projects.
The supply plan came amid soaring housing prices driven by record-low interest rates to tackle the economic downturn amid the COVID-19 pandemic.
The country’s central bank, however, tightened its monetary policy stance to curb inflation by raising its policy rate six times since August last year, including the first 50-basis-point rate increase in July.