Disordered developments in urban skirt of the Seoul Metropolitan area came to be a social issue this year. Mass supply of apartment buildings without additional urban infrastructure brought about congestion and shortage of urban services.
In the 4th National Comprehensive Territorial Plan, the basic direction of land use is declared to focus on the qualitative improvement in human settlements rather than on the quantitative expansion.
Three acts concerning urban affairs including Urban Planning Act were totally revised or newly legislated in January 2000 following the directions declared in the 4th National Comprehensive Territorial Plan. And 'Comprehensive Countermeasures against Disordered Development' was announced in May 2000.
These changes in the urban and land use policies affect not only the housing construction directly, but also affect the housing market of newly built units and further the overall housing market. Thus, the purpose of this study is to figure out the effects on the housing market caused by those policy changes.
The critical change that affects the housing market is to strengthen the regulation on floor area ratio(FAR). The ratio has been allowed up to 200% for the semi-agricultural area and to 300% in the urban area. For the urban area, this regulation will be maintained until 2003 when Urban Planning Regulations for municipality levels complete to classify the residential area into three categories following the Urban Planning Act. But for the semi-agricultural area, the FAR is temporarily reinforced to 80% until January 2002 when the National Land Use and Urban Planning Act is newly established.
Reinforced FAR in the semi-agricultural area reduces profitability of housing construction business, which results in sudden stop of housing construction or sales price increase. Decrease in new housing supply will bring about demand shift to the urban market, which will cause house price increase.
House price in the 2nd half of this year is expected to increase by 2.4% for overall, and by 3.5% for apartments. In the long-term prospective, house price increase is forecasted to be 4∼.5% per year. However, decrease in demand caused by the price increase will bring the market equilibrium again.
Therefore, land supply has to be promoted to stimulate housing starts. New town development with pleasant residential environment can be one of the solutions. Promotion of real estate financing is also critical. Introducing REITs and activating project financing is urgent to operate market based restructuring in construction industry.
- 국토정책변화에 따른 주택시장 전망 및 대책(Potential impacts of newly announced Floor-Area-Ratio(FAR) on housing market)
- 윤주현; 김혜승
국토정책변화에 따른 주택시장 전망 및 대책(Potential impacts of newly announced Floor-Area-Ratio(FAR) on housing market)
용적률 규제강화를 중심으로
|Series Title; No||국토연 / 2000-51|
|Subject Country||South Korea(Asia and Pacific)|
|Subject||Territorial Development < General|