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| Minister of Land, Infrastructure and Transport Byun Chang-heum is moving to the government building to hold an inauguration ceremony at the government’s Sejong Government Complex on the 29th. 2020.12.29/News1 © News1 Jang Soo-young reporter |
Even in the first month of the new year, home price anxiety remains. This is because the government has released supplies and pre-generation measures one after another in the last two to three months of last year, but the price of apartments is increasing. Accordingly, next week’s new Minister of Land, Infrastructure and Transport, Byeon Chang-heum’s first move this year is likely to move swiftly, focusing on improving the effectiveness of regulations. Experts and the real estate industry are paying attention to the market message at the meeting of ministers related to the real estate market inspection first.
◇Ilsan Seo-gu occupied the first place in the weekly house price… First since January 2017 statistics
According to KB Real Estate Liveon on the 3rd, the nationwide apartment sale price as of the 28th of last month rose 0.41% from the previous week. In particular, Ilsan Seo-gu, Goyang-si, Gyeonggi-do, rose 2.04%, recording the highest increase in the country. It is 0.5 percentage points higher than Sejong’s second-placed 1.52%. This is the first time since the start of related statistics in January 2017 that the rate of increase in house prices in Seo-gu, Ilsan, has reached the 2% range.
The reason why apartment prices in Ilsan Seo-gu, which recorded negative until May last year, turned to an uptrend, was in June when the government designated most of the metropolitan area except Paju and Gimpo as regulated areas in the June 17 measures. Nearby Ilsan, which was already a regulated area, benefited. In particular, experts see the case of Ilsan-seo-gu as evidence that the government’s policy to regulate house prices is losing its effectiveness. Young-jin Ham, head of Jikbang Big Data Lab, said, “With the liquidity trend still being, regulated areas are being designated in most major regions including the metropolitan area, and funds are rushing to places with high investment value.” Came” he pointed out.
As effective solutions included in measures for housing supply and cheonsei volume are expected to be possible only after a year or two, the fluctuations in the apartment and jeonse prices are on a clear rise. According to the’National Weekly Apartment Price Trends for the 4th Week of December 2020 (as of 28th),’ released by the Korea Real Estate Agency (formerly the Korea Appraisal Board) on the 31st of last month, the national apartment price rose 0.29% from a week ago. The rate of change in apartment prices in Seoul recorded 0.06%, up 0.01%p from the previous week. In particular, it is evaluated that Gangnam 4 district (0.1%), which is the target area of the government’s house price stabilization policy, led the increase in house prices in Seoul. The rate of change in apartment rental prices across the country also recorded 0.29%, maintaining the same level as a week ago (0.3%).
Even experts believe that the’real estate frenzy’ will hardly disappear even considering the successive measures and regulations announced earlier. Kim Gyeong-gyu, head of the Korea Investment & Securities Institute’s Asset Succession Research Institute, said, “It will increase by more than 5% nationwide.” Lee Eun-hyung, a senior researcher at the Korea Institute for Construction Policy, also said, “The rate of increase in house prices may exceed 10%.” “Don’t be fooled by the sound of saying that the adjustment phase is coming.”
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| Seoul apartment complex. 2021.1.3/News1 © News1 Reporter Heo Kyung |
◇In this month, the meeting of the Ministers of Real Estate related to the Ministry of Land, Infrastructure and Transport What is the solution to’turn off the house price’?
The atmosphere of the Ministry of Land, Infrastructure and Transport, which received the second minister in three years and six months by the Moon Jae-in administration, is also severe. Right now, the new Minister of Land, Infrastructure and Transport Byeon Chang-heum is expected to focus the entire capacity of the Ministry of Land, Infrastructure and Transport on the’Quality Housing Supply Measures’ to be announced before the Lunar New Year holiday on the 11th of next month. The problem is the correspondence between the purchase price of the apartment, which shows an overheating spread. According to the principle of holding once every two weeks, the Real Estate Ministers’ Meeting, held on the 22nd of last month, should be held next week. However, the meeting may be postponed until the second week of this month, considering the government-wide schedule at the beginning of the year and the time for Minister Byeon’s work report and alternative deliberation. The key is this year’s first real estate policy message to be released in coordination with real estate related ministries such as the Ministry of Strategy and Finance. It is pointed out that if the existing regulatory framework is followed as it is, only the learning effect of’Gangnam Unfailing’ will be repeated.
Experts agree that at least the message sent to the real estate market for the first time in the new year should be’definite supply signal’,’expansion of supply diversity’, and’change of taxation policy’. Doo Seong-gyu, a senior research fellow at the Korea Institute of Construction Industry, pointed out, “The government’s strengthening of taxation for pressure of multi-homed people is creating a favorable environment by accelerating scarcity due to shortage of supplies, rather than releasing houses.”
Song In-ho, head of the Economic Strategy Research Department, Korea Development Institute (KDI), said, “Supply expansion is good, but it has become important where and what services are provided.” “We need to increase our business in connection with the private sector. Lee Chang-moo, a professor at Hanyang University’s Department of Urban Engineering, said, “It’s because it doesn’t plant expectations that the supply of housing will expand in areas that people prefer.”
An official from the Ministry of Land, Infrastructure and Transport said, “Returning the year-end and the beginning of the year and reviewing measures to stabilize the housing market,” he said. “An appropriate alternative will be prepared considering various measures.”