S. Korean builders to cut new apartment supply next year
11/12/2008 15:29
Majority of South Korea's construction companies plan to reduce new
apartment supply in 2009 due to dismal local housing market, the Korea Herald
reported today.
Major builders, such as GS Engineering and Construction,
already announced the downsized amount of new apartments to be listed on the
market next year.
GS Engineering and Construction said they plan to build
only 5, 000-6,000 apartments in Seoul and neighboring cities while Daewoo
Construction will provide 9,000 apartments that were originally intended to be
put on the market within this year, the report said.
Many small and
medium-sized companies which are suffering from liquidity have also minimized
the apartment supply scheduled for next year, the report said.
Along with the
sluggish demand, construction companies are also hesitating to release new
apartments as the government is expected to announce some of deregulation
packages to boost the liquidity- squeezed sector.
Early next year, the South
Korean government is considering easing rules on housing price caps, which was
imposed by the former Roh Moo-hyun administration in September 2007 to prevent
speculation.
Xinhua
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