Hong Nam-ki "Presidential Election Promises Affect Housing Prices in Specific Regions" (Comprehensive)

37th Real Estate Market Inspection Meeting of Relevant Ministers

Deputy Prime Minister Hong: "Monitoring Unusual Trends"
"70,000 Pre-Subscription Houses This Year, Twice Last Year"

Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, presides over the "37th Real Estate Market Inspection Meeting of Related Ministers" and delivers opening remarks at the Government Seoul Office in Gwanghwamun, Seoul on the 19th. (Photo by Ministry of Economy and Finance)

[Sejong=Asia Economy Reporter Moon Chaeseok] Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, expressed concerns on the 19th that the real estate-related pledges of presidential candidates could affect the stabilization trend of real estate prices. Accordingly, the government plans to closely monitor the market to avoid disrupting the recent downward stabilization trend in the real estate market and will implement pre-sale applications every month, supplying more than twice the number of units compared to last year, totaling 70,000 units this year.

At the 37th Real Estate Market Inspection Meeting held on the morning of the same day, Deputy Prime Minister Hong stated, "Since the beginning of this month, there are signs that housing prices in some areas are being influenced by large-scale development pledges during the election process."

Hong added, "The government is monitoring unusual trends closely with serious concern. Real estate market stabilization is a common goal that both ruling and opposition parties, as well as the current and next administrations, should pursue. It is more important than anything else to unite efforts to ensure that the hard-won stabilization trend is not damaged."

Following the announcement of pledges such as Yoon Seok-yeol, the People Power Party candidate’s extension and new construction of the Metropolitan Express Railway (GTX), and Lee Jae-myung, the Democratic Party candidate’s revitalization of redevelopment and reconstruction, real estate market prices in some areas have moved. Pyeongtaek City in Gyeonggi Province, mentioned by candidate Yoon as an extension area of the GTX-A line, saw the weekly apartment sale price index increase rate rise from 0.04% in the first week of January to 0.14% in the second week. The rise rate in Anseong City, Gyeonggi Province, where a single-track railway was proposed, also increased from 0.11% to 0.22%.

To continue the trend of real estate price stabilization, the volume of pre-sale applications this year is planned to be about twice that of last year. Deputy Prime Minister Hong said, "We will supply about 70,000 units this year through pre-sale applications, which is about twice the amount compared to last year. Among these, more than half, or 38,000 units, will be private sector units preferred in terms of size and brand."

In particular, to enhance public perception of pre-sale applications, starting next month with 6,000 units in Uiwang Gocheon, pre-sale applications will be conducted every month. Around 4,000 units will also be supplied in central Seoul through urban complex projects. Deputy Prime Minister Hong added, "This year, we will conduct pre-sale applications for public self-owned housing for the first time, and the volume for the highly competitive 3rd New Town will be expanded from 9,000 units to about '12,000 units + α'."

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