1ST HOUSING SUPPLY POLICY BY YOON

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The Yoon administration is to announce its first housing supply policy on Aug. 9. It plans to supply more than 2.5 million apartments for low- and medium-income families. The government is currently finetuning its plan.

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At the core of the new housing supply policy is easing restrictions for downtown areas. The floor area ratio will be raised to over 500 percent in areas adjacent to subway stations to maximize housing supply. Red tape will be cut through integrated examinations for construction projects. Regulations on rebuilding and re-development will also be revised. Sources say the government wants to introduce measures to recapture up to half of extra profits from rebuilding, and amend safety regulations for apartments subject to reconstruction. The plan also includes affordable housing for young people, one of President Yoon's campaign pledges, and the supply of housing in areas adjacent to subway stations for first-time homeowners. The plan will likely determine the future course of housing prices in the nation. This week, apartment prices in the capital region recorded the largest decrease since April 2019 due to rising interest rates. Apartment prices in Seoul have declined for the tenth consecutive week. The biggest drop could be seen in Gangbuk-gu, Nowon-gu, Dobong-gu and Seodaemun-gu districts. Seocho-gu District, the only one in Seoul that used to see prices go up, had the upward trend stopped for the first time in 20 weeks. In Incheon and Gyeonggi-do Province, apartment prices plummeted even further than the previous week. Apartment prices continue to fall and apartments up for sale are in excess, as few are willing to buy homes lately with interest rates projected to rise further.