Lee Jae-myung to review 50,000-home supply plan on Aug. 7

President Lee Jae-myung is set to review a housing supply package that now includes a broader non-apartment deregulation drive aimed at reviving a market hit by weak construction and tight financing. Alongside earlier discussions on new housing sites, relocation-loan support and selective easing tied to supply projects, officials are considering raising the floor area ratio for officetels built on support facility sites in industrial complexes and semi-industrial zones to 400% from 250%, lifting loan-to-value ratios for non-apartment purchases above current levels in regulated zones, and offering selective project financing support for viable developments. The push comes as non-apartment supply has fallen well short of government goals. Despite a pledge last September to facilitate groundbreaking on 71,000 private non-apartment units in the greater Seoul metropolitan area, including 16,000 in Seoul, total nationwide construction starts reached only 14,773 units in the first half of this year, with just 3,700 in Seoul. Real Estate R114 data showed only 184 officetel units were supplied in Seoul out of 2,423 planned this year, while Cheongyak Home data showed only six urban living housing complexes launched sales in Seoul. Industry participants argue that current density rules and financing limits make many projects uneconomic, especially on high-priced metropolitan land. Experts say additional steps such as tax benefits and broader exclusions from multi-homeowner rules may still be needed. The debate is unfolding as subscription demand strengthens in non-regulated parts of Gyeonggi Province and Incheon, where easier financing has drawn buyers, highlighting how policy settings are reshaping supply and demand across the wider Seoul area.