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

[Anchor]

The government is poised to announce real estate measures that include additional housing supply. While the government has pledged to accelerate the supply process, the third-generation new towns first announced in 2018 still have a long way to go before move-in.

Reporter Baegun looks into the situation from the field.

[Reporter]

Gyosan District in Hanam, Gyeonggi Province, designated as a third-generation new town in late 2018.

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

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

The housing construction progress rate here remains at 0% niedriger.

At the time of the preliminary 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 people who gave up, wondering if they might fail to secure their own home by trusting the government and waiting, and instead went ahead and bought homes elsewhere.]

None of the other third-generation new towns have seen move-ins yet, with the first move-in among these new towns scheduled for Gyeyang, Incheon, at the end of this year.

In the field, the land compensation process is cited as the biggest cause of delays.

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

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

In some cases, even after land compensation is completed, actual relocation is delayed, which pushes back demolition and construction simultaneously.

Experts point out that it is necessary to consider measures to carry out the compensation process and relocation preparations concurrently.

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

Starting this coming December, even after compensation is finalized, compliance penalties of up to 10 million won may be imposed if people refuse to vacate and fail to hand over land or buildings.

However, a measure to provide incentives to residents who cooperate with compensation has failed to pass the threshold of the National Assembly.

Attention is focused on whether the upcoming housing supply measures will include specific plans to reduce project durations.

(Photo: Yonhap News / Reported by Kim Hak-mo, Video by Shin See-un, Design by Park Hye-jin)
※ Please note: This article was translated by AI and may contain errors.