Hong Nam-ki: "1st Generation Single-Homeowners' Property Tax Burden Maintained at Last Year's Level... Payment Deferral for Elderly"

40th Real Estate Market Inspection Meeting of Relevant Ministers... "We Will Ensure No Impact on Health Insurance Premium Benefits"
"Localized Instability Mainly in Gangnam 4 Districts... Full Effort Until the Last Moment to Focus Policy Capabilities"

[Image source=Yonhap News]

[Asia Economy Sejong=Reporter Kwon Haeyoung] Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, stated on the 23rd regarding the property tax burden on single-home owners, "We will discuss alternatives to temporarily maintain the overall property tax burden similar to the previous year while ensuring there is no impact on health insurance benefits."

At the 40th Real Estate Market Inspection Meeting held at the Government Seoul Office on the same day, Deputy Prime Minister Hong said, "The government has been preparing and responding with additional relief measures under the consistent principle that the burden on actual single-home owners should not surge during the process of public price realization." Regarding the comprehensive real estate tax, he explained, "A payment deferral system will be introduced and applied for single-home owners aged 60 and above."

He added, "Detailed information such as the scope of application, reduction levels, and expected effects will be announced today at 11 a.m. through a joint briefing with related ministries," and stated, "For the finalized plan, we will promptly carry out follow-up measures such as proposing amendments to laws (including the Restriction of Special Taxation Act) and reorganizing the computer system."

Regarding the recent real estate market, he diagnosed that while a general downward stabilization trend continues, concerns about rising house prices are emerging mainly in the Gangnam 4 districts. Deputy Prime Minister Hong said, "Since the second week of March, there have been slight decreases in listings and a rebound in the supply-demand index in some areas such as the Gangnam 4 districts, indicating localized signs of instability. We are closely monitoring these unusual trends," and emphasized, "It is absolutely important to manage the market situation stably so that the downward stabilization trend of real estate market prices does not waver, especially as we approach a government transition."

In the Gangnam 4 districts, the price increase rate rose from -0.01% in the first week of March to 0% in the second week. Listings decreased from 13,100 to 13,000, and the supply-demand index rose from 85.7 to 86.5.

However, regarding the overall real estate market, he analyzed, "For the first time in 2 years and 7 months, the prices of existing homes (sales price index) in Seoul, the metropolitan area, and nationwide simultaneously declined for more than a month, and actual transaction prices have fallen for four consecutive months until February. The continuous interest rate hikes by the U.S. Federal Reserve (Fed), stabilization of household debt, and visible housing supply are expected to create favorable conditions for future market downward stabilization."

Deputy Prime Minister Hong emphasized, "The next government will make every effort until the very last moment to focus policy capabilities on market stabilization, including enhancing the sense of supply through pre-sale and public redevelopment, so that it can promote national housing stability based on a solid market stabilization foundation."

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