Democratic Party presidential candidate Lee Jae-myung announced on the morning of the 23rd a large-scale real estate supply plan to supply 3.11 million homes across the country. This is an increase of 1.05 million units from the 2.06 million housing supply plan announced by the Moon Jae-in administration, and is 610,000 more than the 2.5 million that Lee promised during last year’s primary. 30% of the new housing supply will be allocated to young people first, while real estate measures tailored to youth are included, such as a decision to ease the mortgage recognition ratio (LTV) by up to 90% for first-time homebuyers such as young people.
Candidate Lee is said to have held last-minute meetings with officials of the previous election over the amount of real estate supply until dawn on the same day. A key official of the election committee said, “Lee has taken the lead, insisting that 3.1 million units should be supplied and emphasizing the policy of giving priority to youth. .
○ More than 80% of supply to Seoul and other metropolitan areas
Candidate Lee’s real estate supply measures were concentrated in Seoul, Gyeonggi, and Incheon. Candidate Lee’s plan is to supply 2.58 million units, 80% or more, of the total supply of 3.11 million units, including 1.07 million units in Seoul and 1.51 million units in Gyeonggi and Incheon. Candidate Lee said, “Seoul will have 3.9 million houses. We will be supplying nearly a third of (1.77 million units),” he said.
Regarding the point that it could harm balanced regional development, Candidate Lee explained, “It cannot be a balanced development policy to make it painful to live in the metropolitan area and to avoid it to the provinces.” In addition, they proposed a plan to mass-supply ‘half-price apartments’, which are half the market price in the vicinity, by applying the sale price disclosure system and upper limit system.
However, some point out that such a volume offensive is unrealistic. A real estate expert said, “The city of Bundang supplied 100,000 houses on an area of 5.94 million pyeong, but it seems difficult to supply 100,000 houses with only some sites in Yongsan Park no matter how much the floor area ratio is relaxed. It remains to be seen whether this will come back.”
The Democratic Party decided to supply 200,000 units around the airport instead of relocating to Gimpo Airport, which was originally considered. This is because voices against the transfer were not strong even within the party due to passengers using the Gimpo-Jeju route. Candidate Lee, however, said, “We plan to continue reviewing whether Gimpo Airport will be maintained.” “The largest domestic air demand is Jeju Island, which is a long-term consideration, but we are considering linking the whole country with high-speed rail (KTX) densely and connecting Jeju Island with an undersea tunnel. in progress,” he said.
○ “Basic income for youth by 1 million won per year at 7 trillion won”
Candidate Lee also cast a win over the young people, a vulnerable support group, through a real estate pledge. 30% of the new real estate supply will be allocated to youth without a home first, and in particular, all 100,000 houses near Yongsan Park will be supplied as basic housing for youth. In addition, financial regulations will be greatly eased by allowing first-time homebuyers to receive up to 90% of LTV in consideration of region, area, and price. The acquisition tax burden will also be exempted for houses under 300 million won and cut in half for houses under 600 million won.
Candidate Lee announced the ‘8th Youth Promise’ the day before and said that from next year, he would provide a basic income for youth of 1 million won per year to all young people across the country. Candidate Lee said, “A total of about 7 million people are expected to spend about 7 trillion won in budget.”
By Park Hoon-sang, reporter tigermask@donga.com
Reporter Dong-jun Heo hungry@donga.com
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