The government has assessed that signs of stability in the housing market are expanding, citing a slowdown in apartment price increases in Seoul and a rise in available listings. By the first quarter of next year, approximately 44,000 apartments are expected to be ready for occupancy in the Greater Seoul area, alongside anticipated improvements in housing supply regulations and public housing projects.
On November 13, the government held its third regular briefing on housing supply at the Government Seoul Office, where it announced recent trends in the housing market, supply plans, and the status of regulatory improvements.
According to the government, the rate of increase in apartment prices in Seoul has decreased from 1.27% in July to 1.05% in August and 0.74% in September. The Gangnam and Seocho districts have seen a decline for 14 consecutive weeks, while the three districts of Gangnam, including Songpa, have dropped for 12 weeks straight. This week, Seongdong and Gangdong districts also experienced price declines. The volume of apartment transactions in Seoul has also decreased, falling from 8,900 in May to 3,900 in September, which is below the five-year average for September of 4,100.
The number of available listings has increased as well. As of November 11, the number of apartments for sale in Seoul exceeded 80,000, marking an increase of over 40% compared to the beginning of the year. In the past three weeks, listings for jeonse (long-term lease) and monthly rent have risen by 5.0% and 10.6%, respectively, bringing the total combined listings for sales and rentals to over 123,000.
Leading indicators for supply have also improved. From January to September this year, the number of housing permits in Seoul increased by 33% compared to the same period last year, with 38,000 apartment permits issued, which is 1.5 times the recent ten-year average. During the same period, construction starts rose by 36% to 22,000 units compared to last year.
In the Greater Seoul area, about 16,000 apartments are expected to be ready for occupancy in November and December, with an additional 28,000 units anticipated in the first quarter of next year, totaling 44,000 units. Approximately 6,000 units are set to be completed in Seoul in the first quarter, with around 4,000 units planned in the Mapo, Seocho, and Yongsan areas. By year-end, about 11,000 units will be additionally sold in the Greater Seoul area, including 1,100 units in Goyang Changneung, 400 units in Namyangju Wangsil, and 500 units in Bucheon Daejang, as part of the third new town development.
Improvements in housing supply regulations are also underway. The government has completed 65 out of 145 regulatory improvement tasks included in the August 13 rapid housing supply measures. In December, 284 shared-equity public housing units will be supplied in Goyang Changneung, allowing residents to pay only 25% of the sale price upon move-in, with the remaining equity acquired over 20 years.
Financial support has resolved challenges faced by eight projects, totaling around 6,000 units. A project in the Sinchon area of Seoul, which had been halted, is set to resume construction in September next year with 435 units, following a restructuring using funds from the Korea Asset Management Corporation (KAMCO).
The Korea Land and Housing Corporation (LH) is launching a public housing project with private participation, aiming for a total of 9,000 units across 10 blocks in the second half of the year. On this day, bidding began for six blocks, totaling 5,782 units, including Namyangju Wangsil 2 and Goyang Changneung, with plans to proceed with bidding for the remaining four blocks, approximately 3,000 units, by year-end. The total project cost is estimated at 2.5 trillion won, with construction targeted to begin next year.
Starting at the end of next month, the government will unveil a 'Housing Supply Digital Dashboard' to provide updates on the supply plans and progress of major housing projects. From December, a 'Housing Supply Integrated Support Center' will be established to address challenges encountered during the permitting and financing processes.
* This article has been translated by AI.
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