15~18% of housing permits and permits
Withdrawal of project during construction start/completion process
Influences such as financing and union problems
An analysis showed that about 18% of housing permits did not reach completion. This is because there are many cases where projects are withdrawn or delayed due to conflicts within and outside the reconstruction and redevelopment associations as well as problems with financing of construction companies and developers depending on economic conditions.
Real Estate R114 announced on the 15th that, as a result of analyzing the average annual housing permits, starts, and completions nationwide (excluding Sejong City) from 2005 to last year, 85% of the number of starts and 82% of the number of houses that have been licensed and approved was found to be only 82%. did.
According to the statistics, 94% of permits and permits in Seoul have been completed. It is analyzed that this is because not only the business feasibility is relatively good, but also the supply of reconstruction and redevelopment and public housing sites was mainly done, and there were few private housing sites projects. In the case of Daejeon, the ratio of completed construction to licenses was 94%, the same as in Seoul. Gwangju (93%), Busan (87%), Gyeongbuk and Gyeongnam (85% each), Jeju (82%), Chungbuk (81%), and Gangwon-Ulsan (80% each) were followed in that order. On the other hand, Incheon (68%), Chungnam (73%), and Gyeonggi, Jeollabuk-do, and Jeonnam (78% each) had a relatively small share.
The government announced a housing supply plan for 2.7 million households across the country (an average of 540,000 households per year) through the ‘August 16 measures’. The plan is to supply 500,000 households in Seoul, 1.08 million households in the metropolitan area excluding Seoul, and 1.12 million households in rural areas over the next five years. However, considering the gap between the amount of permits and the amount of construction started and completed, the number of houses actually completed is expected to decrease significantly.
In the case of apartments, which account for about 63% of the housing units, the number of permits and permits reached 378,169 in 2019 and 351,700 in 2020. decreases to In Seoul, the number of occupants in 2024 is expected to be only 12,043, the lowest since 1990 when the real estate R114 began to count. Ji-hae Yoon, senior researcher at Real Estate R114, said, “If we substitute this statistic into the planned amount of 2.7 million households nationwide (annual average of 540,000 households), only about 2.2 million households will be supplied. Taking this into consideration, the number of completions is highly likely to decrease further.”
Reporter Lee Hyun-il [email protected]