Input 2021.01.11 16:15
The Ministry of Land, Infrastructure and Transport has begun reviewing the HUG’s management method for high pre-sale prices, suggesting the relaxation of the pre-sale price limit, and whether such content will be included as part of the government’s supply measures to be announced before the Lunar New Year holidays. . This is because if the high pre-sale price screening system and pre-sale price ceiling are eased, projects that have been stagnant due to unfavorable profitability due to repressed pre-sale prices will be promoted, which can increase the supply of housing in the private sector.
The Ministry of Land, Transport and Maritime Affairs said, “In the Seocho-gu (pre-sale price limit system) review, the increase in land prices and the additional costs due to the designation of special construction zones were reflected. For screening, the purpose of the system and the method of screening are different, so direct comparison is not appropriate.”
The Ministry of Land, Infrastructure and Transport said, “For the ultimate stabilization of the housing market and housing stability for the homeless people, it is necessary to continuously supply new apartments that are cheaper than the surrounding market price.” We plan to continuously monitor the system operation process to lead to the expansion of opportunities for the common people to find cheap homes.”
The market focused on mentioning the future policy direction rather than the content of the refutation itself. This is because it is an expression that partially accepts the concern that “pre-sale price control can hinder the supply of housing,” which has been steadily raised since former Minister of Land, Infrastructure and Transport Kim Hyun-mi first mentioned the pre-sale price ceiling in July 2019. This is a significant change at the time when the possibility of deregulation measures to increase the supply of housing in the private sector, in addition to the use of urban station areas and semi-industrial areas as housing sites, will be included in the supply plan prepared by the government after the inauguration of the Minister of Land, Infrastructure and Transport Byun Chang-heum. . Markets interpret that the government has shown willingness to improve excessive regulations that block the supply of private housing.
The Ministry of Land, Infrastructure and Transport is known to be reviewing the HUG’s management method for high sales prices. Since the city was introduced in 2017, the HUG excessively suppressed the pre-sale prices, resulting in a disruption in housing supply due to delayed housing supply schedules by the reconstruction cooperatives, or the infringement of property rights due to the unclear screening criteria of HUG, and the difference in the calculation of pre-sale prices for each region is large This is because criticism that the possibility of corruption is high has been steadily raised. Previously, Minister of Land, Infrastructure and Transport Byun Chang-heum also held a meeting with the Korea Housing Association and the Korea Housing Construction Association on the 5th, and received a suggestion that it is necessary to improve the examination of HUG high pre-sale prices to promote private housing supply. And I will actively consult with local governments.”