Total 830,000 homes supplied within 4 years
No detailed plan… Atmosphere’cold and cool’
The city center seen from Namsan, Jung-gu, Seoul on the 4th. News 1
On the 4th, the government announced the Moon Jae-in government ’25th real estate measures’. The government even expresses itself as’supply shock’ and is confident of the effectiveness of the countermeasures, but the market atmosphere is cold. It is criticized that only the content of supplying hundreds of thousands of units has been emphasized, but the detailed plan of supplying it to where and for what amount of compensation is missing.
On this day, the government unveiled real estate measures that will provide 830,000 additional homes nationwide, including 320,000 units in Seoul, through deregulation related to reconstruction by 2025. Hong Nam-ki, Deputy Prime Minister of Economy and Ministry of Strategy and Finance, said, “It will lead to a firm stabilization of the housing market at the level of a’supply shock’ that supplies a total of 830,000 houses by 2025 in the metropolitan area and five metropolitan cities.” The 320,000 units in Seoul are the size of three new cities in Bundang and are similar to the number of apartments in Gangnam 3-gu. The government also expressed anticipation that this measure will be able to prevent’panic buying’ by giving a signal that there will be a large supply of goods to the market soon.
However, after the countermeasures were announced, reactions were poured out from the nation’s largest real estate online community, saying,’Is there? It is pointed out that the specific area and the amount of compensation were not included at all, but only the numbers of ’32 million’ and ’83 million’ were highlighted.
One netizen said, “It’s just counting the numbers on the desk,” and “there is no detail where and how much to supply.” Another netizen said, “It is a policy of catching floating clouds. In one word, this policy was even sarcastic as’imaginary pregnancy’. Similar to the fact that the rise in house prices has accelerated since the regulatory measures were announced earlier, there were many opinions that this countermeasure would rather fuel a rise in house prices this year. Some have raised doubts about whether it is a “election plan” that came when the mayor of Seoul and the Busan mayor by-election and the presidential election were shortly left.
The opinions of experts were not very different. “Anyone can create any number of unconfirmed numbers,” said Kim Hak-ryul, head of Smart Tube Research Center. “It is not important that the number is important, but whether it is the amount that is secured at a fixed time to move in.” He added, “It is necessary to check the progress of the 1 million public housing plan in 2017 and the 1.27 million metropolitan area plan promised by former Minister of Land, Infrastructure and Transport in 2017.”
Lee Eun-hyung, a senior researcher at the Korea Institute for Construction Policy, said, “It is the best option for now to present a long-term supply plan that meets market demand rather than being bound by short-term performance.” “In today’s announcement, we will further refine and reinforce the supply plan There is a need.”
There have also been concerns that the effectiveness of the countermeasure will be limited in the short term due to the time gap between the actual supply. Young-jin Ham, head of Jikbang Big Data Lab, said, “This countermeasure is focused on incentives for public maintenance projects rather than deregulation covering the entire maintenance business, and due to the nature of the real estate and construction industry supply, a time gap between the start and completion is inevitable. There is a possibility that the effect will be limited to the extent that it slows down.” “If the speed and business feasibility of a business improves due to deregulation, it is highly likely to be recognized as a material or good good at the relevant business site. It is expected to be reflected in the market.”
The Ministry of Land, Infrastructure and Transport said it would disclose details on supply measures after agreement with local governments.
Minister of Land, Infrastructure and Transport Byun Chang-heum said, “Most of the locations have been confirmed, but they have not revealed their specific location for subtle regional adjustments or the final complete agreement with local governments.” It is expected.”
Regarding the criticism that it is difficult to affect the current market situation as the amount of the countermeasures is actually supplied for a long time, the Ministry of Land, Infrastructure and Transport said, “If trust that sufficient supplies will continue to be supplied to the market at low prices is formed We expect that the buying trend will ease and the market will stabilize,” he said. “Through this measure, we have secured additional non-residential remodeling and new construction purchase agreements that can provide short-term supply, so we will do our best to follow up.”
Reporter Na Jin-hee [email protected]
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