Real Estate Market, Concerns Over "Additional Regulatory Measures Targeting Gangnam 3 Districts" Expected

[Asia Economy Reporter Yoo In-ho]

[Image source=Yonhap News]

In the real estate market, President Moon Jae-in's reiteration of the "war against real estate speculation" on the 14th is being interpreted as a signal of strong additional regulatory measures targeting areas with soaring prices such as the Gangnam 3 districts (Gangnam, Seocho, Songpa).

At the New Year's press conference held at the Blue House's State Guest House that morning, President Moon said, "We will continuously implement strong measures to restore the sharply risen housing prices to their original levels." This is interpreted as targeting the Gangnam 3 districts, where prices have surged mainly due to reconstruction apartments.

In this context, the market expects regulations stronger than the December 16 measures to be introduced. In particular, experts emphasize President Moon's statement that "some areas have experienced rapid price increases, which must be restored. We will make efforts. I do not think all measures are in place yet." This highlights that real estate policy is focusing on 'fairness.'

Among the additional measures under consideration are extending the reconstruction period from the current 30 years to 40 years and strengthening the reconstruction excess profit recovery system.

Expanding the resale prohibition period for apartments purchased through public or private land price ceiling systems and strengthening investigations into the sources of housing purchase funds are also being discussed.

An industry official said, "Since the president pointed out that ordinary citizens feel a sense of alienation due to soaring real estate prices targeting specific areas, strong additional regulations will be introduced," adding, "However, rather than insisting solely on stabilizing the market through regulations, we should also consider ways to increase housing supply."

This content was produced with the assistance of AI translation services.