More than 13,000 public housing units will be supplied in the greater Seoul area in the first half of this year. The figure, up more than 40% from a year earlier, is expected to draw strong interest from genuine homebuyers amid growing concerns over a supply lock-up ahead of the end of a moratorium on heavier capital gains taxes for multiple-home owners.
The Ministry of Land, Infrastructure and Transport (MOLIT) said Monday that it would begin accepting occupant applications starting Tuesday for a total of 3,100 units, including in third-phase new towns. The latest supply includes 1,896 units from pre-subscription offerings. Expectations are rising that the public's perception of housing supply in the greater Seoul area will improve as main subscriptions get into full swing.
The largest portion of the latest supply comes from Blocks A-1 and A-3 in the Namyangju Wangsuk 2 district, totaling 1,498 units. As the district's first housing complex, it will offer walking access to the planned Ilpae Station (tentative name), to be newly built when the Gangdong-Hanam-Namyangju Line, an extension of Subway Line 9, opens. Its proximity to the Dasan New Town and the Yangjeong Station-area district is also a strength, allowing residents to enjoy existing living infrastructure.
Block S-1 in Goyang Changneung, with 494 units, will be developed as a so-called "elementary school-embracing" complex containing a site reserved for an elementary school. It has good access to Hwajeong Station on Subway Line 3 and the Pyeongtaek-Paju Expressway. Block A-9 in Incheon Gyeyang is a 317-unit Newlywed Hope Town, characterized by its proximity to the Seoul Ring Expressway 1 and Incheon Metro Line 1 and its large-scale green belt.
Supply of small and mid-sized housing sites continues as well. Block A-1 in Siheung Hajung, with 400 units, will be built near the Siheung National Sports Center and Mulwang Lake, while Blocks A-1 and A-2 in Anyang Gwanyanggo, totaling 404 units, have elementary and middle schools within a 500-meter radius, allowing children to walk to school.
Sales prices will be set at about 90% of nearby market rates. Final sales prices will be disclosed through the public notices, and subscription applications will be accepted sequentially starting on the 11th of next month.
For the first half as a whole, the scale of public housing supply in the greater Seoul area grows even larger. Public project operators including the Korea Land and Housing Corporation (LH) and the Gyeonggi Housing and Urban Development Corporation (GH) plan to supply a total of 13,400 units in the first half. That is 43% more than the 9,400 units supplied during the same period last year.
In the third-phase new towns alone, a total of 5,700 units will be supplied, including 3,900 units in Goyang Changneung. In addition, 7,700 more units will be offered at major housing sites such as Hwaseong Dongtan 2 and Seongnam Nakseng.
The market believes the latest public housing supply could partly ease the supply lock-up phenomenon that may emerge after the end of the capital gains tax moratorium. It is assessed that the supply could absorb pent-up subscription demand while broadening options for genuine homebuyers.
"For those without homes who have maintained subscription accounts for a long time, public housing remains the most attractive option," said Park Ji-min, head of Wolyong Subscription Research Institute. "Complexes that combine both location and price competitiveness are expected to see high competition rates."
"This year, the volume of housing sales in the greater Seoul area has increased significantly compared with previous years, so the public's perception will improve," said Kim Young-guk, head of the Housing Supply Promotion Headquarters at the Ministry of Land, Infrastructure and Transport. "We will push housing supply forward with speed and contribute to market stability."
