2.4 Countermeasures: Stop slowing the rise in house prices… LH suspicion is ankle

The rate of increase in apartment prices, which had slowed for 4 consecutive weeks after the government’s ‘2 and 4 housing supply measures’, has stopped. However, it is expected that house price anxiety will increase as the government’s propelled housing supply countermeasures are raised due to the alleged speculation of land in the Gwangmyeong Siheung New City by employees of the Korea Land and Housing Corporation (LH).

According to the weekly apartment price trend of the Korea Real Estate Agency on the 11th, the nationwide apartment sale price rose 0.24% as of the 8th, maintaining the increase last week. The national apartment price has been 0.28%→0.27%→0.25%→0.25%→0.24% since the fourth week of February.

Seoul apartment prices also maintained the same 0.07% increase rate as last week. After the announcement of the ‘2-4 measures’, it slowed down and stopped for 4 weeks in a row (0.10% → 0.09% → 0.08% → 0.07%).

A representative from the Real Estate Agency said, “After the 2.4 measures, new housing sites such as Gwangmyeong Siheung were announced, and sales increased due to expectations from the implementation of supply measures and concerns about interest rate hikes from the US, and the buying trend slowed, and the rise was maintained around the pipe mandate tax, reconstruction and relatively undervalued large equilibrium. He explained.

In Seoul, the weekly increase rate was highest in Yangcheon-gu (0.11%), where expectations for the progress of the reconstruction were revived as complexes that crossed the first safety check-up gate of reconstruction appeared one after another. Following this, the rate of increase in Gangnam 3 districts, where reconstruction complexes such as Seocho-gu (0.10%), Gangnam-gu (0.09%), and Songpa-gu (0.08%), were concentrated exceeded the average.

The apartment price in the metropolitan area was 0.28%, slightly reducing the increase compared to the previous week (0.29%). Uiwang-si (0.91%) rose mainly to morning and Gocheon-dong, which are expected to improve traffic, and Ansan-si (0.76%), mainly to areas that were affected by traffic concessions or undervalued compared to the neighborhood. Siheung City (0.82%) also increased significantly, mainly in the Eungye district, which has an influence on the place where the 2/24 measures were announced.

Incheon (0.39%) rose for the second consecutive week, but the increase decreased from last week (0.41%). Yeonsu-gu (0.49%), Michuhol-gu (0.49%), Seo-gu (0.42%), and Jung-gu (0.40%) are still surpassing the rise in the metropolitan area.

The nationwide apartment rental price rose 0.16%, narrowing the rise compared to the previous week (0.17%). Seoul maintained the same 0.06% as Jeonju, but the overall increase in the metropolitan area (0.17→0.15%) decreased. Provincial (0.17%) total price increase was the same as last week.

However, it is predicted that house price uncertainties will arise as suspicion that LH executives and employees made preliminary speculation for 10 billion won using internal information before the Gwangmyeong Siheung District was designated as the third new city in the market.

Public opinion about the government’s policy has deteriorated significantly, and if a similar speculation suspicion is found in the government’s ongoing full-scale investigation of allegations of speculation by public officials, the procedure for the announcement of new housing sites may be delayed.

An industry expert said, “Until the related suspicion is completely resolved, scheduled projects such as pre-subscription to the third new town starting in July should be stopped.” .