Hong Nam-ki "Announcement of 6,000 Private Housing Subscription Units Near Seoul at the End of This Month" (Update)

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 "33rd Real Estate Market Inspection Meeting of Related Ministers" held at the Government Seoul Office Building on the 17th. 2021.11.17 [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 17th, "At the end of this month, we plan to finalize and announce the first pre-sale of 6,000 private housing units, mainly in urban areas near Seoul, out of the 107,000 units in the private sector."

Deputy Prime Minister Hong chaired a meeting of related ministers to review the real estate market at the Government Complex Seoul in the morning and said, "We will actively respond to differentiated demand for private housing, such as brands and designs."

From this year until the first half of 2024, the planned pre-sale volume in the private sector was initially 101,000 units, but reflecting the high willingness of private businesses to participate, it was decided to expand by 6,000 units.

Regarding recent real estate market trends, Deputy Prime Minister Hong said, "While the price increase trend has slowed since September, recently, listings have increased and buying sentiment has weakened, which is being reflected in the perceptions of market participants," adding, "Since there is a significant change in the anxiety that had been driving real estate price increases, we will respond with full force until the recent trend firmly takes root as market stabilization."

From today, recruitment for the third pre-sale of 4,000 units, including the 3rd phase new towns, will begin. Deputy Prime Minister Hong said, "Hanam Gyosan and Gwacheon Juam, which are being offered this time, are among the most preferred areas by those waiting to apply," and added, "With excellent transportation conditions and supplementary measures, we expect the enthusiasm for pre-sale applications to continue, following the 93,000 applicants in the first round (July) and 100,000 in the second round (October)." He also added, "We plan to conduct a total of three additional pre-sales at intervals of about fifteen days until the end of the year to continuously provide opportunities for real demanders to secure their own homes."

This year's pre-sales will start with 4,000 public sale units in Hanam Gyosan and Gwacheon Juam today, followed by 6,000 private sale units at the end of this month, and 136,000 public sale units in Incheon Gyeyang and Bucheon Daejang around mid-next month.

The government also reviewed the rental market trends on the first anniversary of the implementation of the 'November 19 Rental Measures' announced last year. Deputy Prime Minister Hong evaluated, "As of last month, 81.2% (61,000 units) of the supply target was supplied through the November 19 measures, contributing to the stabilization of the rental market supply and demand," and said, "We will additionally supply 4,000 rental units next month by converting vacant rentals into rental-type leases, and promptly review 25,000 applications for new rental units to fully achieve the annual supply target." He also added that the amendment to the Housing Act Enforcement Decree, including deregulation of non-apartment housing, is planned to be completed by next month.

Regarding the increase in transactions of low-priced houses with a publicly announced price of 100 million won or less, mainly in provincial areas, Deputy Prime Minister Hong said, "There have been signs of low-priced houses being accumulated through up/down contracts and name trusts, mainly by some corporations and outsiders," and added, "Since the second half of last year, the government has started a full analysis to identify abnormal transactions targeting corporations and outsiders who bought or sold low-priced apartments." He warned, "We will thoroughly track market disruption activities regardless of type, frequency, or ripple effects, and if market disruption is confirmed, we will take strict measures such as requesting investigations."

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