Park Jumin: "House Prices Will Stabilize by Early Next Year at the Latest... Please Be Patient and Watch Calmly"

"Government's goal is not to collect more taxes... It is to achieve housing price stabilization"
"Real estate policies have delayed effects compared to others... Park Geun-hye administration's supply reduction is causing current housing price rise"

[Image source=Yonhap News]

[Asia Economy Reporter Wondara] Park Jumin, a candidate for the Democratic Party of Korea's party leader, stated, "I believe the government's real estate measures will have the effect of stabilizing housing prices by early next year at the latest."

On the afternoon of the 9th, Park said on his Facebook, "The government's goal is not to collect more taxes. This is merely a means to achieve the policy goal of stabilizing housing prices," adding, "I think the measures announced so far will combine to produce the effect of stabilizing housing prices in the second half of this year or by early next year at the latest."

He continued, "Real estate policies take longer to show effects compared to other policies, such as the long time required for housing supply. Therefore, the analysis that the supply reduction policy of the Park Geun-hye administration is resulting in the current rise in housing prices is gaining strength," he said.

He added, "(The reason I think this way) is because the government's policy direction was not wrong," and said, "I would appreciate it if the public could watch with a little more patience."

Park said, "The policy goal of the Moon Jae-in administration is solely 'housing price stabilization,'" and emphasized, "To achieve this, intervention in the market is inevitable. No government in the world leaves real estate entirely to the market."

Regarding the Moon Jae-in administration's real estate measures, he explained, "Usually, when the real estate market is sluggish, the government increases demand and reduces supply. Conversely, when the real estate market overheats, it suppresses demand and expands supply. All the measures announced by the Moon administration fall into this category."

He added, "The Moon administration used policy tools such as loan regulations like LTV and DTI, housing transaction permit systems, mandatory funding plan submissions, increases in holding and transaction taxes, and expansion of designated speculative areas to lower the expected returns on multi-home demand and investment. To increase supply, they announced plans including expanding housing supply in the Seoul metropolitan area, the 1 million housing supply plan presented in the residential welfare roadmap, designation of the 3rd new towns, and expansion plans for newlywed hope towns."

Park criticized the United Future Party, which criticized the government's real estate measures, saying, "Kim Jong-in, the leader of the United Future Party, is an economics expert. Although he recently raised his voice to criticize the government's measures, he has not specifically explained what exactly is wrong," he said. He also pointed out, "I am curious about what alternatives Leader Kim has. Opposition for the sake of opposition may help political strife but is hard to see as a responsible attitude for the people."

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