President Moon New Year’s ConferenceㅣReal Estate Stability Measures
Excess demand due to rapid increase in liquidity and household numbers
“The real estate market stabilization was not successful” Japyeong
Measures to’Expand supply in downtown Seoul’ before the Lunar New Year
Dramatic development of public, station area, and new residential land
The existing anti-speculation policy remains the same
yunhap news
President Moon Jae-in expressed his willingness to stabilize the housing market through special supply expansion while maintaining the existing anti-speculation policy. The government predicted that the supply plan to be released before the Lunar New Year “will exceed market expectations.” President Moon answered in this way after receiving an inquiry regarding real estate measures at a New Year’s press conference held online and offline at the Blue House on the 18th. When asked for an evaluation of the government’s housing policy, President Moon said, “It was true that it was decided that speculation could be better cut off considering the trend of increasing supply than the previous government. However, in the end, we focused on preventing speculation. I did not succeed.” He added, “There is a side in which demand exceeded more than we had predicted, and in the end the shortage of supply fueled the rise in real estate prices.” In addition to the liquidity and low interest rates released on the market due to the rapid increase in demand, President Moon drew attention, saying, “Despite the trend of population decline, 610,000 households increased last year.” Specifically, the figure also suggested that the increase in the number of households from 20,000 households compared to the previous year in 2019 increased to 180,000 households last year. President Moon said that urgent supply measures are needed to respond to the unexpected increase in housing demand, and that the government’s plan to expand housing supply in downtown Seoul will contain such details. Regarding the method of supply expansion, he said, “We will increase the amount of housing to a level far exceeding the level expected by the market through public redevelopment, station area development, and drastic development of new housing sites by increasing the participation of the public sector.” As President Moon emphasizes the supply of special housing, it is expected that the government’s supply measures will also be empowered. The government is planning to significantly expand the supply of housing through public high-density development in low-density urban areas such as station areas, semi-industrial areas, and low-rise residential areas. Meanwhile, President Moon said, “We will keep the existing speculation suppression stance intact,” and expressed opposition to partial deregulation, such as easing the heavy taxation on the capital gains tax for multi-homed people, which was recently raised and controversial in some of the passports. The easing of heavy taxation was discussed in the pursuit of supplementary measures to encourage multi-homeowners’ homes to be sold to the market, but it is interpreted as being concerned that there are serious side effects such as undermining policy consistency and sending false signals to the market. By Choi Jong-hoon, staff reporter [email protected]