(To read more on the multifamily market, click here.)
SEOUL-The Geomdan area in the port city of Incheon has been earmarked by the government as the site of a new satellite city. The new city is intended to increase the supply of housing in the capital, seen by government officials as essential in the stabilization of real estate prices.
Officers of the Ministry of Construction and Transportation say that the site was selected because of its location close to the capital. The proposal is to build on 18.15 million sm to create 56,000 new homes that can house 300,000 residents. The homes will be sold around 2010. The area of the new city will be slightly smaller than Bundang, south of Seoul.
A statement by the government says the construction plan is intended to control spiraling house prices around Seoul. Prices have continued to climb despite tough government measures to curb them in the past few years. Those measures include limiting redevelopment of existing apartment houses and raising ownership and capital gains taxes.
In addition to the Geomdan project, existing plans to develop Paju will be expanded to allow the building of more new homes. Paju is east of the capital city near the demilitarized zone separating the two Koreas.
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