South Korea to fast-track housing supply in Seoul to cool prices
The persistent strength in housing prices has added to concerns over household debt and financial stability
[SEOUL] South Korea will accelerate a boost to housing supply in the Greater Seoul area, broadening its response to a yearlong rally in apartment prices after a raft of earlier measures to curb speculative demand proved insufficient.
The move is part of a housing supply expansion plan announced in early September, under which the government aims to break ground on more than 1.4 million homes nationwide over five years to 2030, according to a government statement released on Thursday (Jan 29).
Authorities are now moving to make the impact more visible by fast-tracking building of about 60,000 homes from as earlier as 2027, starting with projects in city centres, Finance Minister Koo Yun-cheol said in the statement.
“We will not stop at today’s announcement, we will continue to identify additional housing supply in urban areas and make further announcements as projects become ready,” Koo said at an inter-agency meeting on accelerating housing supply. “We will also swiftly prepare concrete institutional reforms aimed at expanding housing supply and announce them in the near future.”
The latest initiative targets younger households and newlyweds, with about 32,000 homes planned in Seoul, 28,000 in Gyeonggi province and a smaller number in Incheon, according to the statement. Projects will focus on underused urban land and include public-led redevelopment and newly built rental housing, the government said.
Apartment prices in Seoul have climbed for about a year, rising nearly 9 per cent in 2025 despite a series of government measures, complicating the Bank of Korea’s policy outlook. The persistent strength in housing prices has added to concerns over household debt and financial stability, limiting the central bank’s room to ease monetary policy even as growth shows signs of cooling.
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Koo said that the government will closely monitor the progress of designated sites to ensure timely delivery, adding that further urban supply locations and regulatory measures are under review and will be announced soon. BLOOMBERG
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