ABSTRACT
This chapter assesses the impact of the regulatory framework and focuses on modifications and reforms that could facilitate land provision. It reviews the quantitative supply of urban residential land in order to illustrate how quickly land is being consumed by urbanization and residential development and what the limits might be in the future. The chapter looks at Korea from an international perspective, contrasting the Korean experience with that of the United States, Germany, and Japan in terms of land supply, housing prices, household income, and finally the responsiveness of the housing supply. Higher house price to income ratios, higher rates of inflation in land prices, and lower price elasticities all signal restrictions on the ability of suppliers to readily respond to household demand for additional housing units. Supply of land through administrative mechanisms and public or quasi-public institutions as is being attempted in Korea is supply of land by regulation.
