Real estate experts cited ‘2·4 real estate measures’ as the biggest variable in the real estate market this year. It is a policy to expand urban supply by supplying 323,000 households in Seoul alone. However, there is a lot of uncertainty as it is unclear whether the key is to participate in the private sector. It is observed that the housing market may become more unstable if the government’s 25th measure fails to play its role.
As a result of asking 50 real estate experts about the impact of the second and fourth measures on the market, 72% of the Korea Economic Daily said that it is effective in the medium and long term, but the short-term effect is limited. This measure focused not on the’actual supply volume’ until 2025, but on’securing the site’. Experts agreed that it would take at least three more years to actually move in. This means that the effectiveness of the countermeasure is difficult to appear immediately. Then, 10% of the responses were’will be effective depending on the region’ and’will further boost the increase in house prices’.
Among the 2·4 countermeasures, 28% of experts cited’designation of a new public housing site’ in the questionnaire that would have a positive effect on market stability. Through this measure, the government plans to supply a total of 263,000 households in new housing sites across the country. It exceeds the supply volume of the 3rd new city (173,000 households). After final discussions with local governments are completed, presentations will be made two to three times in the first half of this year. Siheung, Gwangmyeong, Gyeonggi and Gambuk, Hanam are considered candidates. This was followed by’high-density development such as low-rise residential areas in the station area’ (26%), and’expanding sales volume and subscription opportunities for people in their 30s and 40s’ (20%).
Regarding the limitations of the 2nd and 4th measures and points to be supplemented, 42% of the respondents chose the “public-oriented measures that do not include activation of private maintenance projects.” In particular, experts point out that there is a lot of antipathy for public-led development. Public redevelopment and reconstruction that the government has previously promoted are also in a state of poor participation.
Woo Byung-tak, head of the Real Estate Investment Advisory Center of Shinhan Bank, said, “It was suggested to increase the floor area ratio and exempt from the reconstruction excess profit redemption system to revitalize public-led development, but it is not known whether it will actually serve as an incentive.” Seems to keep it.” There were also many opinions that’not enough to calm the short-term market overheating’ (28%).
Controversy over constitution such as infringement of property rights is also a variable. The government decided to liquidate the real estate, such as houses purchased after the announcement date (4th), in cash without giving priority to apartment supply (occupancy rights) even if public-led development is conducted. Cash settlement means receiving compensation at an appraisal price lower than the market price. Dae-Jung Kwon, a professor at the Department of Real Estate at Myongji University, said, “It is highly unconstitutional, such as infringement of property rights, in that even buyers for the purpose of living are subject to cash settlement. Regarding this, the Ministry of Land, Infrastructure and Transport said, “While preparing countermeasures, it went through a legal review and decided that it was not unconstitutional.”
Reporter Jang Hyun-joo [email protected]
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