President Moon Jae-in has pledged to announce "extraordinary measures" before next month's Lunar New Year holiday, including public redevelopment, development of areas near subways stations and new land, to increase the housing supply.

At a New Year's press conference on Monday, Moon said his administration will seek increased public sector participation in Seoul and surrounding areas, reinforce incentives and simplify relevant processes, while maintaining its policy aim of curbing speculation.

The president said the supply increase will far exceed market expectations, to help ease public anxiety over a housing shortage, which in part caused soaring home prices.

Moon acknowledged that his real estate policies aimed at curbing speculation have failed to stabilize the housing market. He also explained that demand exceeded supply amid an increase in single-person and two-person households.