Hong Nam-ki: "Even if Officially Announced Prices Rise, Property Tax on Mid-to-Low Priced Single Homes Will Not Increase" (Update)

9th Real Estate Market Inspection Meeting of Relevant Ministers

"Property Tax Reduction Plan for Single-Homeowners to be Announced Soon"
Equity Accumulation Type Housing, Move-in with 20~25% Equity… Sales Starting from 2023
Market Disruption Acts, 2,000 People Cracked Down So Far

Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance (right), is delivering opening remarks while presiding over the "9th Real Estate Market Inspection Meeting of Related Ministers" held on the 28th at the Government Seoul Office in Gwanghwamun, Seoul.

[Asia Economy Reporters Joo Sang-don (Sejong) & Jang Se-hee] Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, stated on the 28th, "The roadmap for the realization of publicly announced property prices based on the Real Estate Public Announcement Act will be announced soon. In connection with this, the government plans to ensure that the property tax burden for low- and middle-income single-homeowners does not increase."

On this day, Minister Hong presided over the 9th Real Estate Market Inspection Meeting of related ministers at the Government Complex Seoul and made these remarks during his opening statement.

Minister Hong explained, "The meeting discussed the realization of publicly announced prices and measures to ease the property tax burden as the first agenda item. We plan to have in-depth discussions on the detailed property tax burden and, based on this, announce the results after discussions between the ruling party and government ministries soon."

Minister Hong also presented a more detailed business structure of the 'Equity Accumulation Type Sale Housing' announced in the earlier 8·4 measures. The plan allows buyers to acquire only 20~25% of the land and building equity at the initial sale to move in, with rental fees for the public equity portion set at a level lower than market prices. Subsequently, buyers will acquire 10~15% equity every four years evenly, eventually owning 100% of the house after 20~30 years.

Minister Hong said, "The equity accumulation type housing will be gradually applied starting with highly preferred urban sites such as publicly owned land and public maintenance project donation portions among newly supplied housing. Considering future supply schedules, sales are expected to begin from 2023."

Regarding recent instability in the jeonse (long-term lease) market, he diagnosed that various factors besides policies have complexly influenced the market during the transitional period as new systems such as the three lease laws (Jeonse and Monthly Rent Reporting System, Rent Ceiling System, and Contract Renewal Request Right System) are being established. Minister Hong emphasized, "There are instability factors such as low interest rate policies, seasonal factors like the autumn moving season, and postponed new move-in demand due to COVID-19. However, supply factors such as apartment move-in volumes in the metropolitan area and Seoul exceeding previous years in the fourth quarter should also be considered. We will closely monitor and analyze the jeonse market and strive to harmoniously stabilize both the sales and jeonse markets through multifaceted approaches."

He also did not forget to issue a warning message regarding market disruption acts. Minister Hong said, "Special crackdowns on market disruption acts such as illegal resale, illegal brokerage, public housing rental corruption, and jeonse deposit fraud are being strongly enforced. So far, about 2,000 people have been cracked down on."

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