Seoul housing plan for 230,000 units draws criticism over price risks

South Korea's August 13 housing supply package for more than 230,000 units in the Seoul metropolitan area has come under criticism from the Citizens' Coalition for Economic Justice (CCEJ), which says the measures do too little to stabilize prices, curb speculation and improve housing security for homeless working-class citizens. The group argues the plan could deepen the "one smart home" trend by pushing demand toward Seoul apartments with market values below about ₩2 billion, especially after the government's August 3 tax reform package raised concerns about a tax-avoidance shift into homes just below new thresholds. CCEJ said public housing measures risk overlapping with existing programs and warned that the 20-year publicly supported private rental model may be hard to sustain because units can be sold after the mandatory rental period. It also called the easing of loan rules for newly built non-apartment housing ineffective, noting non-apartment auction cases rose more than fivefold to 22,655 last year from 4,305 in 2021. The government plans to promote groundbreaking on 130,000 general housing units by 2030, expand building and floor limits for multi-unit and multi-household homes, and ease financing, including higher construction-fund loan caps and lower interest rates. Mortgage lending to rental business operators will also be allowed for newly built general housing purchases in areas where such lending was largely barred. That support comes as registered lessors face reduced tax incentives. The Korea Housing Lessors Association said retroactive policy changes would undermine trust in the registered rental housing system. CCEJ has instead proposed land-lease housing, where the public retains ownership of the land and sells only the buildings, arguing the structure turns land rent into public revenue rather than bank interest. Officials say stronger backing for long-term corporate rental could bring more stable financing and even foreign capital, while market experts say non-apartment supply expansion could help short-term jeonse (lump-sum lease deposit system) and monthly rent conditions. They added that guarantees, financing and the broader rental-business environment must improve together to rebuild confidence after the jeonse fraud crisis.

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