Over 2 Years Just for Compensation... Can the Government Speed Up Housing Supply?

[Anchor]

The government's real estate countermeasures, including additional housing supply, are imminent. Although the government has pledged a swift supply drive, the 3rd-generation new towns first announced in 2018 still have a long way to go before move-ins begin.

Reporter Baegun looks into the situation from the field.

[Reporter]

Hanam Gyosan district in Gyeonggi Province, designated as a 3rd-generation new town in late 2018.

Heavy machinery stands in various spots, and infrastructure arrangement work is underway.

This is the location where the first main subscription took place in the Gyosan district, with about 1,100 households scheduled to move in, but the construction pace is slow.

The housing construction progress rate here remains at 0%.

At the time of the pre-subscription, the scheduled move-in date was guided as March of next year, but it has now been delayed by more than two years.

[Choi Nak-hyung / Real Estate Agent in Hanam, Gyeonggi Province: (Among prospective residents), I have seen quite a few who left to buy homes elsewhere, worrying whether they might fail to secure their own homes while trusting and waiting for the government.]

Among other 3rd-generation new towns, none have reached the move-in stage yet, though the very first move-in for a 3rd-generation new town is scheduled to take place in Incheon Gyeyang by the end of this year.

People in the field point to land compensation procedures as the biggest cause of delays.

Hanam Gyosan took 33 months from the start of compensation to the commencement of development construction, while Incheon Gyeyang took 30 months, and Namyangju Wangsuk District 2 took 22 months, averaging 23 months across six districts.

[Jang Jun-yong / Chairman of the Gyosan Redevelopment Committee: (Because it was a greenbelt zone) even though it is adjacent to Songpa, land prices are low. Therefore, there is a big gap between the price residents want and the appraised value provided by LH.]

Even after land compensation is completed, actual relocation is delayed, which in some cases pushes back demolition and construction together.

Experts point out that it is necessary to consider plans to carry out compensation procedures and relocation preparations simultaneously.

[Park Won-gab / Senior Real Estate Expert at KB Kookmin Bank: Currently, relocation takes place after land compensation is completed, but we need to create relocation complexes or facilities in advance so that relocation can happen simultaneously with compensation...]

Starting this December, an enforcement fine of up to 10 million won can be imposed even after compensation is finalized if individuals refuse to hand over land or buildings and resist eviction.

However, the plan to provide incentive grants to residents who cooperate with compensation has failed to pass the threshold of the National Assembly.

Attention is focused on whether concrete measures to reduce project periods will emerge in the upcoming housing supply countermeasures.

(Photo & Reporting: Kim Hak-mo, Video Editing: Shin Seeun, Design: Park Hye-jin)
※ Please note: This article was translated by AI and may contain errors.