The 19th Real Estate Measure... Expected as Early as the 20th

Housing Market Overheating Under 900 Million Won Due to 12·16 Measures

Expansion of Regulated Areas and Strengthening of Loan Restrictions Announced

Deliberation Committee to Meet Tomorrow, Announcement Expected the Day After

[Asia Economy Reporters Inho Yoo, Hyunjung Kim, Sehee Jang] The Moon Jae-in administration is set to announce its 19th real estate stabilization measure as early as the 20th. This comes two months after the December 16th measure that completely banned mortgage loans on houses priced over 1.5 billion KRW in regulated areas. As the market for houses priced under 900 million KRW overheated due to a balloon effect caused by suppressing high-priced homes, it is expected that the government will expand regulated areas and further tighten loan restrictions.

According to the Ministry of Economy and Finance and the Ministry of Land, Infrastructure and Transport on the 18th, the government plans to hold a Residential Policy Deliberation Committee meeting in writing on the 19th to decide additional real estate regulation areas, and then finalize and announce the real estate measures on the following day, the 20th. In particular, among Suwon, Yongin, and Seongnam (collectively known as Suyongseong), where house prices have recently surged, it is expected that Suwon’s Gwonseon, Yeongtong, and Jangan districts, as well as Yongin’s Cheoin district, which are currently excluded from the adjustment target areas, will be newly designated. Areas adjacent to Seoul such as Guri, as well as parts of Osan, Dongtan, and Pyeongtaek (collectively Odongpyeong), are also expected to be included in the adjustment target areas. Although ruling party lawmakers representing these districts expressed reluctance ahead of the April general elections, it is reported that the ruling party, government, and Blue House are conducting final coordination on this matter.

Earlier, Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, appeared on a broadcast the previous day and stated, "Prices are rising excessively in some areas, especially for mid- to low-priced apartments and houses," and added, "We will announce additional real estate measures within this week." The core of the measures includes ▲suppressing price increases ▲protecting genuine buyers ▲strengthening crackdowns on illegal tax evasion and real estate transactions.

In this measure, the government is expected to focus more on expanding regulated areas and tightening loan regulations rather than artificially adjusting tax rates. If an area is designated as a regulated area, the loan-to-value ratio (LTV) and debt-to-income ratio (DTI) will be reduced, and capital gains tax surcharges for multiple homeowners will apply, naturally achieving regulatory effects through taxation. A government official also explained, "Rather than responding immediately to the rapid price increases in some areas like Suyongseong through tax measures, it is understood that a simpler procedure such as loan regulation is being considered."

Additionally, loan restrictions on mid- to low-priced houses are expected to be included. This is because the balloon effect in house prices is appearing in the Gyeonggi region, where houses priced under 900 million KRW are concentrated. Deputy Prime Minister Hong also previously specified "mid- to low-priced apartments" as the target before mentioning the measures. Inside and outside the government, it is strongly anticipated that the LTV limits for houses priced between 600 million and 900 million KRW within the entire regulated areas will be reduced or that loan restrictions will be tightened to the level of speculative overheated districts.

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