Will the New Government's 'Real Estate Policy' Be Released This Week... Attention on the Level of 'Regulation Easing'

The volume of apartment sales in Seoul has turned to an upward trend after eight months. According to the Seoul Real Estate Information Plaza, the number of sales transactions in Seoul in March was 937, a 16.4% increase compared to the previous month (805 transactions). This marks a rebound after seven consecutive months of decline from August last year (4,064 transactions) through February this year (805 transactions). It appears that the market, which had been frozen due to expectations of regulatory easing, is beginning to breathe again. A view of apartments from Namsan on the 11th. Photo by Mun Honam munonam@

[Asia Economy Reporter Jo Gang-wook] The Presidential Transition Committee (PTC) is expected to announce the new government's real estate policy direction soon. As expectations for deregulation in the real estate sector grow, causing housing prices to fluctuate in Seoul and other areas, attention is focused on the content and extent of the announcement.

According to political circles on the 17th, the PTC plans to officially announce the new government's real estate policy direction as early as this week.

The announcement is expected to present the big picture of President-elect Yoon's flagship pledge to supply 2.5 million housing units. Currently, the PTC's real estate task force is focusing on preparing specific measures to stabilize the market based on Yoon's real estate pledges.

Separately from the real estate task force, a 'Urban Housing Supply Implementation Task Force' has been formed jointly with the Ministry of Land, Infrastructure and Transport and the Seoul Metropolitan Government. The supply implementation task force is reportedly working on concrete business models such as transit-oriented first homes and youth cost-price housing to achieve the supply of more than 2.5 million housing units, including 1.3 to 1.5 million units in the metropolitan area.

In particular, the supply implementation task force is said to be focusing on preparing a housing supply roadmap for Seoul, where housing demand is high, and identifying pilot project sites to establish business plans. Attention is on whether specific regions will be mentioned along with the framework of the 2.5 million housing supply roadmap. There is also interest in whether plans to lift the development restrictions on the Gangnam area greenbelt (GB) to secure land in Seoul will be considered.

Regarding the plan to supply 470,000 units (305,000 units in the metropolitan area) through reconstruction and redevelopment, the key issue is the extent of deregulation to activate private sector supply. Recently, due to expectations of deregulation, apartment prices in some Seoul areas such as Gangnam, Mok-dong, and Yongsan, as well as first-generation new towns like Bundang and Ilsan, have been fluctuating, leading to calls within the PTC for a cautious approach to deregulation.

Accordingly, the upcoming PTC announcement on real estate policy is expected to outline the broad framework of the 2.5 million housing supply plan and somewhat specify the election pledges. It is also anticipated that detailed policies and deregulation measures will likely be announced sequentially after the government takes office, depending on market conditions.

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