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 Thursday.
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.
Source:Xinhua
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