Blocking demand for speculation, protecting tenants, etc.
Keep existing policies… The effect is unknown
7th party government meeting… Policy review
Possibility to focus on supply expansion
President Moon Jae-in is tapping the gavel at the Blue House on the 5th, starting the first State Council meeting of the year. Blue House Photo Reporters
President Moon Jae-in announced on the 5th that he would not hesitate to establish additional measures in relation to the surge in real estate prices. It is expected that the current government’s 25th real estate measures will come out soon, in line with the announcement of the preparation of measures before the Lunar New Year holiday by Minister of Land, Infrastructure and Transport Byeon Chang-heum. There is a prospect that it will be a complementary measure to the existing speculative demand suppression policy, which is also interested in supply expansion. However, with regard to real estate policy, the effect of the policy is uncertain as it has clearly stated that it will continue the existing policy stance. In particular, some point out that it has already been implemented considering the reality that the effect of real estate supply policy is difficult to be reflected in the market in a short period of time.
President Moon said, “We will not hesitate to establish additional necessary countermeasures while maintaining the government policy stance of blocking speculative demand, expanding housing supply, and strengthening the protection of tenants,” while presiding at the New Year’s first Cabinet meeting at the Blue House. “More than anything else, he announced that he will focus on quickly devising innovative and diverse housing supply plans.
President Moon’s comments came from a phase in which the rapid rise in real estate seldom subsided. In fact, at the end of last year, the nation’s house prices rose the most in nearly 10 years. According to the nationwide housing price trend released by the Korea Real Estate Agency on this day, in December last year, the nationwide house price rose 0.90%, recording the highest increase rate in 9 years and 8 months since April 2011 (1.14%). The jeonse price also rose 0.97%, the highest in 9 years and 3 months since September 2011 (1.33%).
In addition, it is known that the Democratic Party is planning to reexamine the real estate policy stance by calling Minister Byeon at the party’s consultation as early as the 7th. It is expected that the first draft policy will be revealed after Byeon took office. A Democratic Party official said in the currency, “There are many points on real estate and the minister has also been replaced, so it is the step to discuss real estate measures.” “The Minister Byun is one of the leading real estate experts in Korea,” he explained. “It will be the first party-government consultation to open with the policies that are being considered.”
From the perspective of the Democratic Party, Minister Byun is a’salvation pitcher’ who emerged amid falling approval ratings due to a failure in real estate policy during the days of former Minister Kim Hyun-mi. The Democratic Party’s anticipation for Byun is inevitable as this is an important year to lay the groundwork for re-creation of the government ahead of the Seoul and Busan mayoral elections in April and the presidential election next year.
An apartment in downtown Seoul viewed from the 63 Building in Yeouido, Seoul on the 3rd. yunhap news
The new real estate policy that the government will bring out has the potential to focus on supply expansion. President Moon also mentioned various housing supply plans. Minister Byeon also announced at the inauguration ceremony on the 29th of last month, “We will prepare and announce specific plans to provide sufficient affordable and high-quality housing in the city before the Lunar New Year holidays.” Minister Byeon suggested effective use of subway station areas, semi-industrial areas, and low-rise residential areas as a housing supply plan.
However, it is not a full change to the existing real estate policy centered on suppressing speculative demand. Minister Byeon also said, “We will build a system that blocks excessive speculation demand and shares development profits.” Experts pointed out that there are no special expectations for government real estate measures. Young-jin Ham, head of Jikbang’s Big Data Lab, said, “It seems that rather than turning around the policy of demand suppression measures, we will increase the quantity and do both. Ji-young Yang, director of the R&C Research Center, said, “There are no more regulatory measures to restrain demand. Lastly, it is like offering a supply plan.” “The market believes that’lease-oriented supply measures will be implemented.’ I have no special expectations.”
Reporters Dohyeong Lee, Sejun Park and Minyoung Bae [email protected]
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