Hong Nam-ki and Kim Hyun-mi: "Real Estate Market Calming... Price Increase Rate Has Stopped"

[Image source=Yonhap News]

[Asia Economy Reporter Kim Hyemin] Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, who leads real estate policy, and Kim Hyun-mi, Minister of Land, Infrastructure and Transport, have judged that the real estate market has entered a considerable stabilization phase.

Deputy Prime Minister Hong attended the plenary session of the Special Committee on Budget and Accounts held at the National Assembly on the afternoon of the 31st and said, "The real estate market showed instability in June and July, but I believe it is entering a considerable stabilization phase due to government policies."

He also reacted sharply to Rep. Hong Joon-pyo's question, "Recently, it is said that the era of 100 million KRW per pyeong has come in Apgujeong-dong, Gangnam. Is this normal?" saying, "Are you pointing this out knowing the apartment price increase rates in Seoul and the Gangnam 4 districts?" Deputy Prime Minister Hong emphasized, "Because the real estate market was unstable in the past, strong measures were introduced, and it is a process of gradually transitioning to stability."

[Image source=Yonhap News]

Minister Kim also judged, "The upward trend in real estate prices has significantly decreased since the announcement of the August 4th measures." He said, "Until last week, the increase rate was 0.1%, and in the three Gangnam districts, the increase rate has stopped at 0% for two consecutive weeks."

Regarding his recent comment that "It is unfortunate that people in their 30s are borrowing to the limit (Yeongkkeul) to buy houses," Minister Kim explained, "I believe that real estate prices will stabilize over time, but it is regrettable that many are taking out large loans and purchasing at a time when prices are very high, questioning whether this is a rational long-term choice."

In response to Rep. Lee Jong-bae of the United Future Party's question, "Do you think there is a bubble in current real estate prices, and will prices fall in the future?" he emphasized, "I believe there is a considerable bubble, and over time, there will be a price adjustment."

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