A trend of change is detected in the government’s real estate policy. The ruling party is discussing a plan to temporarily ease the capital gains tax on multi-homed people to stabilize housing prices in Seoul.
According to the Democratic Party and the government on the 10th, the party government started a review on a plan to ease the transfer tax and policies for multi-homed people in the area subject to adjustment from June this year. It includes delaying the timing of the transfer tax scheduled for June 1 or excluding people who meet certain conditions from the regulation. It is interpreted as the purpose of bringing out the property by opening a’retreat’ to multi-homed people in a situation where the entrance (acquisition) to the exit (sell) of housing transactions has been tied up as a countermeasure for real estate released 24 times.
In addition, a key official of the Democratic Party said, “We have not yet gathered opinions within the party in a certain direction, but the party leadership is struggling with the overall tax on the transfer of multi-homed people. Another Democratic Party official said, “The Minister of Land, Infrastructure and Transport is considering whether to announce the real estate countermeasures that will come out sooner or later.” However, because there is room for interpretation as a retreat of the existing real estate policy, it is a stage to consider how much content to contain.” .
Deputy Prime Minister Hong Nam-ki (first right) is speaking at the’Real Estate Market Inspection Ministers’ Meeting held at the Seoul Government Complex on the 22nd of last month. News 1
Deputy Prime Minister Hong Nam-ki and Minister of Strategy and Finance also appeared in the KBS Sunday Diagnosis on the same day, saying, “The instability in the real estate market was the biggest factor in supply and demand. It is a perception that there is insufficient supply.” He replied, “There is a part where psychological stability can be expected as a notice for the supply of housing, and it is also an important supply policy to let people who have three or four of them sell their products.” . He added that “policy decisions to provide new homes and policies to induce multiple homeowners to offer existing homes can be devised as supply measures.”
Rather than raising taxes and pressure to hold on to the sale, it is interpreted as a means of increasing the supply of housing in the market by easing regulations. This move is different from what the government has argued so far that “there is no shortage of housing supplies.”
However, the Ministry of Strategy and Finance is cautious about easing the transfer tax. This is because there is no guarantee that the sale will be immediately released on the market just by easing the heavy transfer tax.
In a press release, the Ministry of Knowledge Economy said, “We are in-depth reviewing various ideas to provide adequate housing for affordable housing and living in the city.” . Regarding this, an official from the Ministry of Information and Communication explained, “We have not yet officially delivered our opinions.” “We plan to look internally to see what effects can be achieved if the transfer tax is eased.”
A view of the apartment complex around Gangnam, Seoul. yunhap news
Recently, changes in the position on the pre-sale price limit have been detected. The Seocho-gu office in Seoul recently approved the general sale price of’Raemian One Bailey’, a reconstruction apartment in Banpo-dong, subject to the sale price limit system (minorization system) at 56.6 million won per 3.3m2. It’s the highest ever. It is 15.9% higher than the general pre-sale price (48.91 million won per 3.3㎡) calculated by the Housing and Urban Guarantee Corporation (HUG).
Until now, high pre-sale prices provoked the surrounding house prices, so the government’s keynote was that even if the controversy over the sale of lottery was tolerated, the government had to push the pre-sale price. However, the Ministry of Land, Infrastructure and Transport published reference materials related to the calculation of the sale price of One Bailey and said, “It is planned to monitor the operation process of the system so that the distribution system does not hinder the supply of housing, but it leads to the expansion of opportunities for affordable housing for the homeless commoners through the selection of appropriate sale price. Said.
Lee Sang-woo, CEO of Invade Investment Advisory, a real estate expert, said, “Although we made a premise, we aim to improve excessive regulation that prevents the supply of private housing.” “Managing HUG’s high pre-sale prices, which the government has used as a useful tool for house price management. “We took a somewhat relaxed stance on the regulation,” he analyzed.
Sejong = Reporter Kihwan Kim [email protected]