The Ministry of Land announced Wednesday that it has chosen new sites for its housing construction initiative aimed at rising supplies in urban areas and lowering housing prices.
The Ministry of Property, Housing and Transport has indicated that it has chosen a large area covering 1,271 square meters in Gwangmyeong and Siheung in Gyeonggi Province as the location for approximately 70,000 new homes.
The two satellite cities are situated approximately 12 kilometers southeast of Yeouido, the main business district in eastern Seoul.
Approximately 18,000 units will be built in Busan, some 450 kilometers southeast of Seoul, and 13,000 units are expected in Gwangju, some 330 kilometers south of the capital, the Ministry said.
For the new site in the broader Seoul district, the Ministry said that it will set up a comprehensive rail system accessible to the capital city center within 20 minutes and extend the highway infrastructure to minimize traffic congestion.
“The government will develop transportation, infrastructure and self-sufficient functions to absorb part of
demand for housing and jobs in city centers,” the Ministry said in a statement.
Additional sites for 150,000 units will be announced in April after discussions with provincial governments, the Ministry said.
The proposed sites are part of the Government’s larger strategy to raise the number of new homes by up to 836,000 nationally over the next four years.
The supply plan involves 323,000 new units in Seoul, a hot spot in the Gyeonggi Province, and 293,000 in the neighboring Gyeonggi Province by 2025.
Together with the housing plans announced last year, the number of new units in the greater Seoul area, home to nearly half of the nation’s 52 million people, will grow to over 2 million, the largest supply initiative under the Moon Jae administration.
The Ministry has confirmed that the supply plan is aimed at offering affordable housing in major cities, which are easy to live in because of their proximity to workplaces, and at squeezing issues among prospective first time buyers.
The move towards expanded supply comes when rising house prices have showed no signs of a loss despite the government’s attempts to balance the real estate market.