Government Announces 22nd Real Estate Measures... Indicates Additional Designation of Regulated Areas

The 6th Emergency Economic Central Countermeasures Headquarters Meeting and Economic Relations Ministers' Meeting Held

Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, is delivering opening remarks at the '6th Emergency Economic Central Countermeasures Headquarters Meeting' held on the 11th at the Government Seoul Office in Jongno-gu, Seoul. Photo by Kang Jin-hyung aymsdream@

[Sejong=Asia Economy reporters Kim Hyunjung and Yoo Inho] Amid the ongoing rise in apartment prices in some non-regulated areas of Seoul and the metropolitan area due to the low interest rate trend and increased liquidity, the government has announced its twenty-second real estate policy, including the possibility of designating additional regulated areas. It also clearly reaffirmed the government's firm determination to continue the "war on real estate" despite the COVID-19 pandemic.

Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, stated in his opening remarks at the 6th Emergency Economic Central Countermeasures Headquarters meeting and Economic Ministers' meeting held at the Government Seoul Office on the morning of the 11th, "The recent decline in housing prices in regulated areas of Seoul and the metropolitan area has stalled, and price increases in non-regulated areas continue to be observed, so the government is maintaining vigilance and carefully reviewing the situation." Hong emphasized, "As repeatedly stressed, the government's commitment to stabilizing the real estate market, which is directly linked to people's livelihoods, is more consistent and resolute than ever. If signs of instability appear in the housing market, we will promptly take necessary measures without hesitation."

[Image source=Yonhap News]

Deputy Prime Minister Hong's remarks serve as a kind of "warning" regarding the recent growing concerns about a rebound in certain real estate markets. According to the Korea Real Estate Board, due to the government's strong regulations and the economic downturn caused by COVID-19, apartment sale prices in Seoul, which had been falling continuously since the end of March, halted their nine-week decline and stabilized last week (as of June 1). The sale price index scheduled to be announced on June 8 is reported to have reversed to an increase. In the southwestern part of Seoul, prices have already rebounded and increased around districts such as Guro, Geumcheon, Yeongdeungpo, Dongjak, and Gwanak.

Metropolitan areas showing abnormal price surges, including Ansan Danwon and Sangnok, Gunpo, Incheon, Guri, Siheung, Hwaseong, and Pyeongtaek, are also under the government's close monitoring. Especially in Ansan, where new apartment move-ins have continued this year, prices have risen for 34 consecutive weeks since October last year. The government is strengthening investigations into the sources of funds for some transactions in monitored areas to determine whether speculation is involved and is considering designating additional regulated areas or tightening regulations in existing ones.

An official from the Ministry of Economy and Finance said, "We recognize the current real estate market situation as very serious and will employ all necessary measures to stabilize the market." A Ministry of Land, Infrastructure and Transport official also explained, "For abnormal areas, we will take measures such as designating them as regulated areas or strengthening regulations on loans and pre-sale rights at any time."

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