area with a high percentage of completion to licensing
Seoul > Daejeon > Gwangju > Busan
Average amount not reached construction and completion stage 15-18%
"You need to secure more licenses in order for the government to go as planned.
The government announced a plan to license 2.7 million households nationwide (540,000 households on average annually) through the "8.16 Supply Measures."With 500,000 households in Seoul (average 100,000 households per year), 1.58 million households in the Seoul metropolitan area (316,000 households per year), and 1.12 million households in provincial areas (224,000 households per year), nearly 60 percent of them are in the Seoul metropolitan area.
However, as a result of comparing the level of departure from the process in which the licensing volume becomes substantial, on average, 15-18% did not reach the construction and completion stages.
According to the results of comparing the annual average amount of housing permits, construction, and completion data released by the Ministry of Land, Infrastructure and Transport on the 15th, about 15% of the volume deviates from the licensing stage.The volume reaching completion also decreased by about 18%.It is concluded that if the government simply replaces 2.7 million households planned by the government, it will be difficult to materialize about 400,000 households until the construction stage and about 480,000 households until the completion stage.
However, in areas with relatively excellent business feasibility such as Seoul, 94% of the licensed supplies were actually completed, so there were differences in the construction and completion rates by region.
The Seoul area has the highest ratio of construction and completion to licensing volume, with about 90% of the licensing volume construction and 94% being carried out smoothly until the actual completion.According to the government's plan of 500,000 households, more than 450,000 households will be constructed and completed.
Yoon Ji-hae, a senior researcher at Real Estate R114, said, "In general, construction companies prefer to sell and move in areas with excellent business feasibility," but added, "Unlike in the past, Seoul urgently needs to revitalize its maintenance projects to secure supplies."
Following Seoul, areas with a high ratio of completed volume to licensed volume were found in downtown areas (metropolitan cities), including Daejeon 94%, Gwangju 93%, and Busan 87%.On the other hand, Incheon (68%), Chungnam (73%), Jeonbuk (78%), Jeonnam (78%), and Gyeonggi (78%) showed a relatively low percentage of completion compared to licensing.
As announced by the government, the industry calls for 2.7 million households to secure more licensed supplies in order to fully realize them in the market.This is because even after obtaining approval, there are many cases where the project is withdrawn or delayed for a long time due to construction companies' financing problems, differences between construction companies and unions, and economic conditions.
Researcher Yoon said, "Recently, more and more construction companies are reluctant to carry out the project in terms of risk management due to the rapid rise in construction costs and worsening sales economy," adding, adding, "The government needs to ease regulations that hinder the supply process."
[Jo Seongshin, reporter of Maekyung's website]
[Maeil Economy & mk.co.kr]
