Hong Nam-ki "Actively Considering Additional 2,000 Pre-Subscription Units for 3rd Phase New Towns Within the Year" (Update)

The 23rd Real Estate Market Inspection Meeting of Relevant Ministers

Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, is speaking while presiding over the "23rd Real Estate Market Inspection Meeting of Related Ministers" at the Government Seoul Office Building on the 3rd. 2021.6.3 Photo by Yonhap News

[Sejong=Asia Economy Reporter Son Seon-hee] Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, announced on the 3rd, "We will actively consider adding 2,000 more pre-sale units for the 3rd New Town within this year." This policy reflects the high expectations for this year's pre-sale of 30,000 units starting in July, aiming to supply additional units.

On the morning of the same day, Deputy Prime Minister Hong spoke at the 23rd Real Estate Market Inspection Meeting with related ministers held at the Government Seoul Office, discussing the "Progress of Housing Supply Measures including the 2·4 Plan and Additional Support Measures."

Hong stated, "Out of the 836,000 units planned under the 2·4 Plan, we have announced housing supply candidate sites for 229,000 units so far and are actively proceeding with follow-up measures such as resident briefings." He added, "In particular, excluding the 119,000 units of new urban development sites, about 110,000 units of urban project candidate sites have been announced, securing more than twice the target volume of 48,400 units for this year." He also mentioned that once legislation related to the 2·4 Plan is completed in the National Assembly this month, designation of planned districts will be promptly pursued.

Recently, while the volume of housing sales transactions in Seoul has decreased, prices centered on asking prices have been rising. The market is concerned that policies such as the lease reporting system and increased capital gains tax on multiple homeowners, which took effect on the 1st, may destabilize the rental market.

However, Deputy Prime Minister Hong described this as a "one-sided expectation," cautioning, "Market participants need to be especially wary of one-directional bias." He noted, "The real price of apartments in Seoul is approaching the past peak level before the adjustment caused by the 2008 global financial crisis." He also pointed out, "Recently, early tapering has been suggested in the U.S. due to concerns about real estate overheating, and from July, liquidity management of household debt will be strengthened in Korea," urging a comprehensive judgment based on these factors.

Furthermore, he said, "Recently, some relief measures on taxes and loans have been flexibly supplemented, focusing on the housing non-owners, actual demanders, and vulnerable housing groups," emphasizing, "The policy framework of 'consistent housing supply promotion, speculation suppression on multiple homeowners and short-term traders, and tailored real support' will be maintained unwaveringly and consistently."

Regarding the lease reporting system, which mandates reporting of rental prices, he explained, "It is intended to facilitate transactions and support rational decision-making," assuring, "The accumulated lease information will not be used as tax information contrary to the system's purpose."

Concerning the reduction of property tax rates, which has been discussed mainly by the ruling party since the April 7 by-elections, he stated, "We will ensure that the Local Tax Act amendment bill passes the National Assembly in June and make thorough preparations so that the property tax imposition process in July proceeds without issues." Regarding the more closely watched comprehensive real estate tax and capital gains tax, although the reform discussions have not yet been finalized, Deputy Prime Minister Hong added, "We will promptly reach a conclusion between the ruling party and the government."

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