76,700 new homes designated across 6 Seoul metropolitan areas including Gimpo, Guri, and Hanam
Development-restricted zones near Seoul drastically lifted… Follow-up measure to the August 13 policy
Large-scale supply drive aimed at stabilizing Seoul's housing prices
Concerns over 'turning into bedroom towns' if railway and road network connections are delayed
The government has boldly lifted development-restricted zones (greenbelts) near Seoul and designated a total of 76,700 new public housing sites to stabilize the capital area's housing market. While the plan aims to quickly calm the overheated real estate market in the greater Seoul area through large-scale supply signals, concerns coexist that it could end up as haphazard development unless the establishment of metropolitan transportation networks and self-sufficient functions are guaranteed.
According to the Ministry of Land, Infrastructure and Transport and government announcements, the new housing site candidates are 6 key hubs in the metropolitan area that border Seoul or have excellent accessibility, including Gimpo Gochon, Guri Totpyeong, and Hanam Gamil. This measure is a core execution plan of the government's previously announced 'August 13 Housing Supply Expansion Plan,' with plans to drastically accelerate the project timeline aiming for the first pre-sales in 2029 and initial move-ins in 2031.
The market expects this measure to contribute, to some extent, to alleviating the housing anxiety of young, homeownership aspirants and people in their 30s and 40s in the metropolitan area. The strategy is to block panic buying psychology by presenting specific locations and volumes to a pre-sale market that has become anxious following the abolition of the pre-subscription system. However, just like past Boggeumjari housing districts, there are considerable criticisms that the influx of massive land compensation funds, along with controversies over environmental destruction due to greenbelt damage, could stimulate nearby land prices once again.
The key is whether metropolitan transportation infrastructure will be opened early in line with the move-in schedule. As seen in the cases of past 2nd and 3rd new towns, if the connection of roads and urban railway networks is delayed, severe commuting traffic congestion and a decline in urban competitiveness are bound to repeat. A pan-governmental control tower that promptly coordinates infrastructure cost-sharing conflicts between local governments and land expropriation procedures is expected to be put to the test.