Emphasizing “I will maintain the tax system strengthening stance”
Namki Hong “Reorganizing into the market for real consumers, improving tenant housing stability”
The entire area of Heukseok Newtown District 2 in Heukseok-dong, Seoul, selected as a candidate for public redevelopment promoted by the government. / Photo = Yonhap News
The government announced eight public redevelopment candidates to be promoted in Seoul as pilot project candidates, saying that it will focus on housing supply as a real estate measure this year. It also announced that it will present a pre-subscription plan in April in connection with the previously proposed supply measures. However, while emphasizing the strengthening of the tax system, it drew a line on tax easing measures, including the relief of the transfer tax raised by some.
On the 15th, Deputy Prime Minister of Economic Affairs and Minister of Strategy and Finance Hong Nam-ki held the 13th Real Estate Market Inspection Ministers’ Meeting at the Seoul Government Building on the 15th and discussed the ‘2021 Real Estate Policy Promotion Direction’ and’Public Fair Expense Project Promotion Inspection’.
At this event, Deputy Prime Minister Hong said, “Eight areas were selected as candidates for the public redevelopment pilot project.” “Do it”. He added, “Through public reconstruction, we can increase the number of housing supplies in each complex by 58% from the current one, and reduce the co-payment by 37%.”
Deputy Prime Minister Hong said, “As a result of comprehensive consideration of the urgency of maintenance such as retirement, publicity and feasibility such as housing supply effect, eight areas were selected as candidates for the public redevelopment pilot project.” “The next four areas that were not selected this time will be selected by the next selection committee. “We will review it again.” He added that the selection results for 56 areas that were not included in this deliberation as unrepaired areas will be announced in March of this year.
8 candidates for public redevelopment… Designated as a land transaction permission zone
Previously, the Ministry of Land, Infrastructure and Transport and the Seoul Metropolitan Government announced eight pilot projects including Heukseok 2 in Dongjak-gu, Yangpyeong 13 and 14 in Yeongdeungpo-gu, 1-6 Yongdu 1-6 and Sinseol in Dongdaemun-gu, Bongcheon 13 in Gwanak-gu, 2-12 Sinmun-ro 2-12, Jongno-gu, and Gangbuk 5, Gangbuk-gu. did.
All eight are existing maintenance areas in the station area, and projects have been stagnated for more than 10 years on average since the designation of maintenance areas due to lack of business feasibility and conflicts between residents. The government plans to increase the floor area ratio of these business areas to 120% of the legal limit. Previously, there were 1704 households, but through redevelopment, an additional 3059 households are expected to increase to 4763 households.
Public redevelopment is a redevelopment project method in which public institutions such as Korea Land and Housing Corporation (LH) and Seoul Housing and Urban Corporation (SH) participate in the project. The floor area ratio is granted up to 120% of the legal limit, and 20-50% of the increased floor area ratio is received as a donation for rental housing. Of the new housing units, half of the general volume, excluding the pre-sale for members, is supplied through public lease and profit-sharing charter. Among the 60 sites that participated in the public redevelopment candidate site competition, a review was conducted on 12 existing maintenance areas, which are easy to screen because a plan for maintenance has already been prepared.
In order to prevent speculation, the government designates these areas as land transaction permit zones. As for the new candidate sites for public redevelopment to be selected in March, the base date for calculating housing sales rights will be announced on September 21, last year, the date of the public offer, as announced when the public offer announcement was made.
Regarding public reconstruction, it was announced that it would reply the results of pre-consulting to 7 out of 15 complexes that applied for pre-consulting. Deputy Prime Minister Hong said, “We have been thinking a lot about ways to balance and balance incentives such as public reconstruction and deregulation, and we have included the results in this consulting.”
According to prior consulting, when public reconstruction is implemented, the number of housing supplies in each complex is expected to increase by 58% on average, and member contributions are expected to decrease by 37%. The consulting contents included not only securing publicity such as donations, but also deregulation such as increasing the type of use area (3 types of housing → quasi-residential area, etc.), and easing the ratio of residential and commercial non-residential facilities (10 → 5%).
In April, 62,000 households pre-subscription plan announced
It also announced that it will materialize the housing supply measures that the government put out last year. Deputy Prime Minister Hong emphasized, “First of all, we will focus on the timely implementation of the 5·6 metropolitan area housing supply plan, 8·4 Seoul area housing supply plan, and 11·19 pre-generation plan announced last year.”
At the same time, “Beginning with Gyeyang in Incheon in July of the year, a total of 62,000 homes, including 30,000 of this year and 32,000 of next year, are being prepared without any problems.” I will do it.”
Hong Nam-ki, Deputy Prime Minister of Economy and Minister of Strategy and Finance, all speak at the 13th Real Estate Market Inspection Ministers’ Meeting held on the 15th at the Office of the State Council of Government Building in Sejong-daero, Jongno-gu, Seoul. / Photo = News 1
However, Deputy Prime Minister Hong adhered to the policy of strengthening taxes such as the comprehensive real estate tax and capital gains tax as scheduled. Some argued that tax mitigation measures, including the transfer tax, are necessary for the sale of multi-homed people to come out quickly.
Deputy Prime Minister Hong said, “The timing of the enforcement of the reinforcement of the tax and transfer tax was set on June 1 of this year, and before that time, they had to induce the sale of houses to avoid heavy and heavy burdens. Now the enforcement date is less than four months.” He said, “We are monitoring the sales trend in anticipation of the opening of the sales.”
It emphasized the will to cut off speculative demand for housing. Deputy Prime Minister Hong said, “The government’s will to cut off speculative demand for housing is unwavering,” he said. “We will strictly enforce policy packages such as tax reinforcement and liquidity regulations that have already been prepared to block speculative demand.” He warned, “In order to establish public order as well as to stabilize the real estate market, we will strengthen tax investigations and crackdown on illegal activities with the will to pursue market disruption such as expedient gifts and illegal subscriptions throughout the year.” .
View of apartment in Seoul / Photo = Yonhap News
Regarding the outcome of last year’s real estate policy, Deputy Prime Minister Hong said, “The market is reorganizing around end-users, with the proportion of homeless people among buyers and the proportion of corporations among sellers.” Monitoring.”
Regarding the jeonse market, he evaluated that “there was a difficulty in supply and demand due to the frictional factors caused by the introduction of the 3rd lease method and the differentiation of households, but considering the trend of the recent increase in rent to cheonsei, the stability of existing tenants’ housing is improving.”
Hankyung.com reporter Kim Hana [email protected]