In 1997, foreign currency crisis happened. Land and housing markets froze, and real estate prices fell down dramatically. To make real estate market stable, many regulations moved out. Among others, the government implemented deregulation on the ceiling of sales prices of new housing since January 1999. Partly because of the success of economy restructuring policies and partly because of the deregulation, housing prices increased and soared again since 2001.
By the way, the land developed by the public sector was supplied with appraisal prices, which was lower than the market prices. This policy aimed to supply the housing with cheap prices. Nevertheless, the private housing construction companies determined the sales prices of new housing almost equal to the market prices. Social critics on land and housing supply manners arose because it seemed only to allow the private companies to earn development gains.
From early 2003, many NGOs claimed that the development gains should be recaptured, and also the building costs of new housing shall be open to the public. They argued that these measures would lead housing prices to be stable. On the other hand, the private companies objected to those measures. They argued that the measures were against market principles. Social conflicts increased on the verge of the National Representative Election on April 2004.
This study aims, neutrally, to suggest the policy measures to address the conflicts. It consists of five chapters. From the Introduction which deals with the background, purpose, and methodology of the research, Chapter 2 describes the theory and proxies of housing market, particularly how the sales prices of new housing are determined, who earns the development gains from land development and housing construction, and what are the basis sources of conflicts on housing market.
Chapter 3 analyzes the land development and supply system by the public sector. Based on the empirical and legal analysis on the manners of land development and supply, it suggests as follows; the land for middle and lower income groups' housing (smaller than 85 square meters) shall be supplied with appraisal prices, which are lower than market prices. The land for middle and higher income groups' housing (larger than 85 square meters) shall be supplied with market prices, i.e., the bidding prices. The funds generated from the bidding system shall be used for the housing welfare of the lower income groups.
Chapter 4 analyzes the housing supply system. It starts the historic evolution of the ceiling system of housing prices, and summaries the pro- and anti-arguments on the openness of the building costs. It suggests as follows; for the housing, which land is developed by the private companies, prices regulations are not necessary. For the housing, which land is developed and supplied by the public sector, two-tied approaches are suggested. For the middle and lower income groups' housing (smaller than 85 square meters), the supply prices shall be linked with the prices of land supplied by the public sector. For the middle and higher income groups' housings(larger than 85 square meters), the regulations on supply prices ceiling are not necessary.
Chapter 5, the Conclusion, summaries the findings and policy suggestions of the research.
- 공공택지 및 분양주택 공급제도 개선방안(Policy tasks of improving the land and housing supply system)
- 정희남; 김근용; 최수; 박천규
공공택지 및 분양주택 공급제도 개선방안(Policy tasks of improving the land and housing supply system)
경기도 : 국토연구원
|Series Title; No||국토연자 / 2004-4|
|Subject Country||South Korea(Asia and Pacific)|
|Subject||Territorial Development < General|