Third Generation New Town Land Use Changed to Expand Housing Supply, Will It Tame Housing Prices?
To curb soaring housing prices, the government will convert non-residential land in 3rd generation new towns into residential use and begin early construction of 12,000 units in H2.
Government Housing Supply Plan: 12,000 Units in 3rd Generation New Towns to Break Ground Early in H2
In a strong move to curb soaring housing prices in the metropolitan area, the government has announced a comprehensive housing supply plan that includes converting non-residential land in 3rd generation new towns to residential use and advancing construction start dates by 1 to 2 years. This is interpreted as a preemptive measure to calm the anxiety of non-homeowners in their 20s and 30s driven by the recent surge in apartment prices.
Conversion of Non-Residential Land and Revitalization of Redevelopment Projects
The core of this policy is to actively convert non-residential areas, such as commercial and business zones that have been neglected due to low demand, into residential zones. Through this, a total of 12,000 housing units will break ground in the second half of this year in key 3rd generation new towns like Wangsuk in Namyangju and Gyeyang in Incheon.
- Shortened Construction Timeline: By conducting site preparation and district designation procedures simultaneously, the actual construction start time will be shortened by 1 to 2 years.
- Faster Redevelopment: To expedite reconstruction and redevelopment projects, the government will strengthen relocation support and significantly streamline related licensing procedures.
- Urban Supply Expansion: New urban complex project candidate sites in Seoul will be announced in July, and new housing volumes will be discovered utilizing unused school plots.
In addition, the government plans to significantly expand the order volume of modular housing, which can be supplied quickly, to 3,000 units—three times the amount of last year—to address short-term housing shortage concerns.
Future Real Estate Market Outlook and Core FAQ
The biggest challenge of this policy is to calm the anxiety of prospective homebuyers in the metropolitan area who are showing signs of 'panic buying'. Real estate experts predict that, considering the time gap until actual move-in, the policy will have a greater effect on limiting follow-up buying sprees by providing a strong mid-to-long-term supply signal rather than immediately stabilizing prices.
Frequently Asked Questions (FAQ)
Q. When is the actual construction start date for major 3rd generation new towns?
A. Major 3rd generation new towns, including Wangsuk in Namyangju (6,800 units) and Gyeyang in Incheon (1,100 units), are scheduled to begin construction sequentially within the second half of 2026.
Q. What kind of non-residential land is being converted to residential land?
A. Commercial land, business land, and idle school plots that have remained unsold or neglected for a long time due to failed demand forecasting will be converted to residential use.
Q. When will modular housing be fully supplied?
A. The government is pushing for the enactment of a special law to revitalize modular housing and plans to increase public order volumes from entities like LH to 3,000 units this year to immediately speed up the supply.