Noh Hyung-wook: "Housing Prices Will Adjust... Buying Now Could Lead to Difficulties in 2-3 Years"

Minister Noh appears on Sunday Diagnosis Live
"Housing prices overvalued... Caution needed in investment"
Discussing cooperation plans with Seoul City
"Measures to address GTX-driven housing price rise"

Minister of Land, Infrastructure and Transport Noh Hyung-wook is speaking at a press corps meeting held at the Government Sejong Convention Center in Sejong City on the afternoon of the 5th. [Image source=Yonhap News]

[Asia Economy Reporter Moon Jiwon] Minister of Land, Infrastructure and Transport Noh Hyung-wook evaluated that current housing prices are overvalued and urged caution in housing investment, as a price adjustment could occur in 2 to 3 years.

Minister Noh appeared on KBS 1TV's Sunday Diagnosis Live on the morning of the 11th to explain housing policy directions. He said, "During the process of overcoming COVID-19, ultra-low interest rates were maintained, liquidity was widely released into the market, and although the total housing supply was not small, there was a mismatch in location and quality. Also, policies so far have not harmonized demand and supply measures well, which is like making moves in bad order in a game of baduk (Go)."

However, he added, "As the liquidity released into the market will eventually be withdrawn, an adjustment in the housing market will come. If you purchase housing recklessly now, you may face difficulties when selling in 2 to 3 years, so please be cautious about investment." He explained that since current housing prices have risen excessively compared to other macro indicators such as growth, inflation, and money supply, a future adjustment phase may occur.

Regarding cooperation plans for housing supply with Seoul City led by Mayor Oh Se-hoon, Minister Noh quoted the phrase "Heukmyo Baekmyo" (Black Cat, White Cat), saying, "If the project is profitable and the private sector is good at it, let the private sector handle it, and where profitability is low and residents' opinions do not align, the public sector can lead development." Heukmyo Baekmyo means that whether the cat is black or white, as long as it catches mice well, it is good.

Minister Noh said, "Our housing policies with Seoul City seem different but are actually the same," adding, "We agree that housing supply must be sufficient, redevelopment projects should not become speculative grounds, and development must be based on market stabilization."

Regarding the plan to supply 10,000 housing units on the site of the Taereung Golf Course in Nowon-gu, Seoul, he acknowledged differences in opinion between Seoul City and the Ministry of Land and ongoing consultations. Seoul City currently insists that green space must be secured and that all 10,000 units should not be supplied. Minister Noh stated, "Seoul City and Nowon-gu's position is to sufficiently guarantee green space in the project area," and said alternatives such as securing substitute sites are being discussed on the premise of meeting housing supply targets.

On Seoul City's request to ease safety inspection requirements for reconstruction, he showed a cautious attitude, saying, "The market situation has not yet returned to a stable state." This is interpreted to mean that regulatory easing related to private reconstruction and redevelopment projects can be pursued only after housing prices stabilize.

Regarding criticism that the sale prices of the 3rd New Towns, set at 60-80% of surrounding market prices, are still burdensome for the homeless, he said, "There are conflicting views," adding, "Some say the prices are so low that it could become a lottery subscription." On the issue of nearby housing prices rising sharply after the recent announcement of the Metropolitan Area Express Train (GTX) lines, he evaluated, "In the long term, overall housing price stability will be achieved," and said, "We will closely monitor the situation and find necessary measures."

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