President Moon Jae-in is holding a New Year’s press conference at the Cheongwadae Chunchu Hall on the 18th. yunhap news
As President Moon Jae-in declared at a New Year’s press conference on the 18th, “We will come up with special supply measures that far exceed market expectations for stabilization of the housing market”. On the same day, government ministries also held a briefing session on the subject of’Real Estate Policy Promotion Status and Future Plans’.
At a briefing session where all departments related to real estate policy such as the Ministry of Strategy and Finance, the Ministry of Land, Infrastructure and Transport, Seoul City, and the National Tax Service participated, Vice Minister of Science and Technology Bang Ki-seon said, “I am sorry that the real estate market has not yet settled.” “We will use all policy measures to stabilize the market. I emphasized.
Regarding additional supply measures to be announced before the Lunar New Year holidays, Heung-jin Kim, head of the Ministry of Land, Infrastructure and Transport, said, “We will focus on securing high-quality residential spaces comparable to those of apartments and apartments.” “Not only houses for sale, but also public self- and public rental houses, etc. It will contain the contents of making and supplying many houses that the common people can afford.” Kim also added, “We will also present the quantity of supplies that can be supplied in a short period of time, such as deregulation of urban construction.”
The Ministry of Land, Infrastructure and Transport announced that it will continue to expand supply through the 3rd new city and public maintenance projects. In the third new towns such as Namyangju Wangsuk, Hanamgyosan, Incheon Gyeyang, Goyang Changneung, and Bucheon Daejang, pre-subscription will begin in July this year, and will supply 30,000 households in the second half and 32,000 households next year. The Seoul Metropolitan Government said, “The supply of housing in Seoul this year is 83,000 households. Of these, it is expected to supply 24,000 households for public rental housing.” Last year, Seoul supplied 80,000 households.
During the transfer tax and as scheduled
At a joint briefing on the real estate market held at the Government Complex Sejong on the 18th, government department officials explain the real estate policy implementation situation and future plans. From left, Kim Dong-seon, assistant director of the Financial Supervisory Service, Kim Tae-ho, head of the National Tax Service Asset Taxation Bureau, Kim Heung-jin, head of the Ministry of Land, Infrastructure and Transport, Lim Jae-hyun, head of the Department of Taxation Department of the Ministry of Strategy and Finance, Kim Seong-bo, head of the Seoul Housing and Architecture Division, and Choi Seung-ryul, the head of the Investigation Bureau of the National Police Agency. yunhap news
The trend of strengthening real estate tax for multi-homed people will continue this year. Lim Jae-hyun, head of the taxation department of the Ministry of Equipment, said, “The government is not currently considering easing or deferring the transfer tax. From June 1, the transfer tax and taxation tax will increase a lot, and as expected, we expect a lot of sales for multi-homed people.”
Specifically, starting from June 1 of this year, multi-homeowners in the area subject to adjustment will increase the heavy tax rate for transfer tax from 10-20% points to 20-30% points. The transfer tax rate on the right to pre-sale of houses held for less than two years and the right to move into a union member is raised to 60-70%. The comprehensive real estate tax rate for multi-homed people is also raised from 0.6~3.2% for each section to 1.2~6%.
Will there be special measures for’supplying the station area?’
At the briefing session that day, it was not specifically mentioned, but the special supply plan, which will be the 25th, is a matter of interest. In the metropolitan area, it is analyzed that’expansion of the station area’ is a realistic alternative to increase the supply of housing in a limited space where everyone wants to live. It is also the content that the Minister of Land, Infrastructure and Transport Byeon Chang-heum recently mentioned.
Specifically, countermeasures are discussed, such as expanding the range of the station area, increasing the floor area ratio, and developing it at high density. As the average floor area ratio of 307 subway stations in Seoul, which is bound by various regulations, is around 160%, a significant increase in floor area ratio can be an incentive to increase supply.
Park Won-gap, senior real estate expert at KB Kookmin Bank, said, “It is good to increase the supply of housing to the station area that a single-person household wants to be a double-income couple and single-person households in their 30s and 40s with housing demand,” he said. “It should fall right, but the direction (location) is correct, but the key is whether the quantity and speed will be solved properly.” He added, “If the regulation on district unit planning in the station area is released, the housing supply that consumers want will increase,” he added.
It should also be taken into account that the key to the development of housing supply and development in the station area is held by the private, not the public. Deok-rye Kim, head of the Housing Industry Research Institute’s housing policy department, said, “We need to solve the problem of rising land prices due to the development of the station area,” and said, “Because the owner of the station area site is not public, it is necessary to coordinate the private and public interests.” He predicted that the success or failure of the supply of housing in the station area will be different depending on how much incentives for developing station areas with varying conditions will be reduced, how much regulations related to construction will be released, and how much public contribution should be made.
Sejong = Reporter Kihwan Kim and Seongbin Lim [email protected]