Hong Nam-ki Announces Plan to Implement Private Pre-sale Subscription in November (Comprehensive)

Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, presides over and delivers opening remarks at the "32nd Real Estate Market Inspection Meeting of Related Ministers" held on the 27th at the Government Seoul Office in Gwanghwamun, Seoul. (Photo by Ministry of Economy and Finance)

[Sejong=Asia Economy Reporter Moon Chaeseok] The government will finalize and announce the implementation plan for this year's preliminary subscription for private sale units next month. By the end of this month, it plans to designate the first preliminary districts for four sites?Jeungsan 4 District, Yeonsinnae Station, east side of Ssangmun Station, and Banghak Station?which are candidates for the 2·4 Plan urban complex projects, and complete the designation of the main districts within this year.

"Designation of Four Urban Complex Project Preliminary Districts Including Jeungsan 4 District and Yeonsinnae Station"

On the 27th, Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, chaired the '32nd Real Estate Market Inspection Meeting of Related Ministers' and announced the 'Results of the First Preliminary District Designation of the 2·4 Plan and Plans to Secure Additional Candidate Sites.'

Deputy Prime Minister Hong said, "Since the announcement of the 2·4 Plan candidate sites, we have secured areas meeting the main district designation requirements equivalent in scale to the entire Pangyo New Town within an unprecedentedly fast period of 4 to 6 months compared to existing private projects." He added, "The Ministry of Land, Infrastructure and Transport plans to designate the first preliminary districts by the end of this month at the 2·4 Plan urban complex project candidate sites?Jeungsan 4 District, Yeonsinnae Station, east side of Ssangmun Station, and Banghak Station?and complete the main district designation within the year."

He explained, "By sufficiently reflecting residents' opinions, the average burden on original residents is reduced by more than 30% compared to private redevelopment projects, general sale units will be supplied at prices significantly lower than nearby market prices, and public interest is also expected to be adequately secured."

Deputy Prime Minister Hong also announced preparations for discovering additional candidate sites. This week, integrated public proposals for private suggestions will be announced, and additional public redevelopment candidate sites will be solicited within this year. Starting from the 25th, applications for the second preliminary subscription of 10,000 units, including Namyangju Wangsuk 2, have begun, and from next month through December, the third and fourth preliminary subscriptions totaling more than 18,000 units will be conducted.

"2,909 Speculators Prosecuted and Transferred... Regular Investigation of All LH Employees' Transactions"

He also disclosed the progress of the anti-speculation measures announced on March 29. He said, "Since the announcement of the '3·29 Measures,' 2,909 real estate speculation offenders have been prosecuted and transferred." The police have confiscated and recovered 138.5 billion KRW in criminal proceeds, and the National Tax Service plans to recover 197.3 billion KRW in evaded taxes.

He announced the innovation achievements of the Korea Land and Housing Corporation (LH). Deputy Prime Minister Hong said, "We have completed related tasks early, including regular investigations of real estate transactions by all LH employees," and added, "Adjustments of 24 non-core functions and a reduction of 1,064 personnel have been confirmed, and the remaining tasks will be completed as quickly as possible."

He also mentioned the system for recovering private profits related to land development projects. Deputy Prime Minister Hong said, "Discussions on eradicating real estate speculation and recovering development profits have recently expanded," and added, "We will review parts of the system related to recovering excessive private profits in land development projects that need improvement."

"Real Estate Market: 'Price Stability and Buyer’s Advantage'"

Deputy Prime Minister Hong assessed the real estate market situation as a trend of 'price stability and buyer’s advantage.' He said, "Recently, the housing market has shown signs of a pause in the rising trend and a gradual change in market sentiment due to a series of measures such as visible housing supply actions since the end of August, interest rate hikes, and strengthened household loan management," adding, "In some private indicators, the buying demand in the Seoul apartment sales market has weakened for eight consecutive weeks since the third week of August, shifting to a 'buyer’s advantage' where sellers outnumber buyers."

He continued, "Now is a crucial turning point for stabilizing the real estate market," and said, "We will mobilize all means to stabilize expectations, including accelerating housing supply, strengthening liquidity management related to real estate, and eradicating market disruption activities, so that the momentum for price stability can spread in earnest."

Deputy Prime Minister Hong stated that since last month, the price increase trend in the metropolitan area and Seoul has continuously slowed. According to him, actual transactions of Seoul apartments since September have seen a significant rise in the proportion of stable or declining prices compared to the previous period. The sales supply-demand index, which indicates the real estate market supply and demand situation, has fallen to the level of late March. Major institutions’ sentiment indicators reflecting expectations for future price increases or decreases have also reversed to a downward trend since last month. The Housing Price Outlook CSI released by the Bank of Korea this month dropped by 3 points to 125.

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