[News Today] HOUSING PROJECTS SCRAPPED

[LEAD]
Amid soaring real estate prices, the government introduced the 'pre-subscription' housing system three years ago to mitigate demand. Recently, the failure of projects in private-sector developments has resulted in a surge of victims. Five complexes with pre-subscription projects have been canceled, affecting 1,500 households. The concern is that rising construction costs could increase this number further.

[REPORT]
A public housing site in Paju, Gyeonggi-do Province.

It's in close proximity to Unjeong Station of the GTX line.

Two years ago, pre-subscriptions for private-sector apartments here had a competition ratio of up to 46:1, with occupancy expected in 2026.

However, as construction costs skyrocketed, no developer was willing to take on the project, and the plot of land still lies dormant.

The only notice the subscribers received was a text message saying the project had been cancelled.
The land plot was returned to the Korea Land and Housing Corporation.

Some 800 people who were preparing to buy new homes and move in have sustained damage.

Yoo Da-young / Housing pre-subscriber (Paju)
I trusted the pre-subscription system because it was government-run. To raise
the down payment, I even moved to a less comfortable home.

In Hwaseong, Gyeonggi-do Province, an apartment construction project for some 100 households of pre-subscribers has also been scrapped.

Staff at developer (VOICE MODIFIED)
(It wasn't easy even in the capital area?)
It's because of the rising construction costs.

Of 45 private-sector housing pre-subscription complexes, five have been cancelled, inflicting damage on some 1,500 people.

Some 13,000 contract winners in 24 other complexes who have yet to sign the main contract are also worried their construction projects could be abolished.

Shin Yong-mun / Housing pre-subscriber (Paju)
If there were issues with the system, why didn't they consider the harm to
subscription winners? Why not transfer the winning status if the project resumes?

The pre-subscription housing system, which was introduced in 2021, has been scrapped.

The land ministry has vowed to look closely into whether the suppliers or the government are responsible, although no relief measures can be promised at this point.