- The scale of the expansion of the pre-registration for the urban complex project is not likely to be large
Growing sense of crisis as demands for withdrawal of candidate sites spread
40% of public housing sites are privately implemented… Thousands of homes available
It is questionable whether private construction companies will participate voluntarily.
Review of incentives provided by the government, tax, etc.
A view of the Gyosan district of Hanam-si, Gyeonggi-do, the 3rd new city. [연합]
[헤럴드경제=민상식 기자] With the government scheduled to announce a plan to expand advance subscriptions next week, attention is focused on whether housing price anxiety in the metropolitan area can be alleviated by expanding advance subscriptions.
The government has decided to supply a total of 62,000 units through advance subscription by next year in new housing sites such as the 3rd new town, but recently announced that it will expand the supply to private housing and candidate sites for the 2nd and 4th measures.
Some predict that up to 5,000 households will be supplied in candidate sites for public housing complex projects (urban complex projects), and tens of thousands of additional households will be supplied from private sale such as the third new city. However, the voluntary participation of private construction companies is required to expand to private housing.
There are many observations in the market that even if the number of pre-orders is increased, there is uncertainty about the move-in period, so the effect on the stability of house prices will not be large.
According to the Ministry of Land, Infrastructure and Transport on the 22nd, the government will conduct an advance subscription for 32,000 households four times from July to December this year. The target sites are mostly metropolitan areas such as 3rd new towns such as Incheon Gyeyang and Jinjeop 2 in Namyangju and Bokjeong 1 in Seongnam.
Advance subscription is a system that supplies apartments 1 to 2 years before this subscription, and 100% occupancy is guaranteed if the homeless requirement is maintained until this subscription after winning.
The government plans to secure supplies mainly for places where project progress is fast, such as securing district designation requirements among candidate sites for urban complex projects.
Project sites in the Gangbuk region, such as Jeungsan District 4 and Susaek District 14, Eunpyeong-gu, which have secured the requirements for district designation, are mentioned as strong candidates. So far, a total of 11 candidate sites for urban complex projects (16,959 households) have secured two-thirds of the district designation requirements. Of these, there is a possibility that up to 5,000 households, or 25-30%, will be divided two or three times and announced as a pre-order amount.
The supply scale of the urban complex is not expected to be large. This is because there is a growing sense of crisis, such as a growing demand for withdrawal of candidate sites for urban complex projects.
The Ministry of Land, Infrastructure and Transport is also reviewing a plan to expand the advance subscription, which is limited to public sales hosted by public corporations such as LH, to private housing.
The problem is that the voluntary participation of private construction companies is required. The Ministry of Land, Infrastructure and Transport and related ministries are said to be considering ways to give incentives such as taxes, loans, and housing land supply to construction companies participating in advance subscriptions.
60% of public housing sites are publicly implemented (about 25% for sale, about 35% for rental). The remaining 40% is privately implemented. In the case of the third new town, the number of privately-owned homes exceeds 100,000. The number of pre-orders for private housing is also expected to be tens of thousands of households.
An official from the Ministry of Land, Infrastructure and Transport said, “As the amount supplied by the private sector among public housing sites reaches 40% of the total public housing sites, it is expected to secure a significant amount.”
The government judges that by increasing the amount of pre-orders, it will be possible to spread the demand concentrated on sales to the pre-sale market.
Minister of Land, Infrastructure and Transport Noh Hyung-wook recently said, “Private housing has more large-scale units such as 84 m² for exclusive use than public housing.
Increasing the amount of pre-orders is expected to have some effect on relieving anxiety over house prices in the metropolitan area. As a result of the first pre-registration for public housing sites in the metropolitan area, more than 93,000 people flocked to the supply of 4333 units, showing a great response from end-users.
However, since it takes at least 4 to 5 years to actually move in, there is an analysis that there will be a limit to stabilizing the soaring housing prices in the metropolitan area.
As demand for the withdrawal of candidate sites for public housing projects is increasing, it is uncertain whether housing will be supplied according to the government’s plan.
Lee Eun-hyeong, senior researcher at the Korea Construction Policy Research Institute, said, “The expansion of advance subscription is positive in that it will increase the supply of housing.
mss@heraldcorp.com
