Yoon Administration to Announce First Real Estate Measures Next Week... Choo Kyung-ho Says "Stabilizing Rental Market"

Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho is presiding over a meeting with real estate market experts at the Government Seoul Office in Sejong-ro, Seoul, on the afternoon of the 14th. 2022.6.14
Photo by Yonhap News

[Asia Economy Sejong=Reporter Son Seon-hee] The Yoon Suk-yeol administration will announce its first real estate measures next week. The plan is expected to include tasks for 'real estate normalization' in sectors such as lease market supplementation, taxation, finance, and supply.

On the afternoon of the 14th, Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho held a meeting at the Government Seoul Office with major academics, research institutes, and private statistical organizations specializing in real estate. He stated, "Based on a thorough diagnosis of the current real estate market situation and future conditions, the government plans to actively normalize excessive demand regulations that hinder housing stability for actual users and resolve difficulties in private housing supply." Deputy Prime Minister Choo is scheduled to hold the first real estate-related ministers' meeting next week to finalize and announce the real estate-related tasks to be pursued in the third quarter.

He added, "Regarding other tasks as well, we will promptly specify detailed implementation plans by comprehensively considering urgency and market ripple effects."

During the meeting, discussions were held on the recent real estate market evaluation, future directions for real estate policy normalization, and measures to stabilize the lease market.

Moon Yoon-sang, Associate Research Fellow of the Real Estate Research Team at the Korea Development Institute (KDI), who attended the meeting, suggested the need to review the normalization of transaction and holding taxes, which have been irrationally imposed on multi-homeowners, as well as supply regulations for stable housing supply.

Regarding the lease market, he viewed the possibility of a sharp price increase in the third quarter as "limited," but emphasized the need to proactively consider easing actual residence requirements to increase rental supply.

Yoon Ji-hae, Senior Researcher at Real Estate R114, assessed the recent market situation as "a phase where loan regulations, interest rate hikes, and price burdens on demand groups are intertwined, intensifying price polarization between outskirts and central areas," and stated, "To improve supply and demand conditions in the future, it is important to diversify demand options to increase the turnover rate of supply within the market."

Deputy Prime Minister Choo said, "While proactively preparing for potential instability factors surrounding the real estate market, it is necessary to actively identify urgent normalization tasks that contribute to livelihood stability and meet public expectations. We will carefully review the suggestions made today and sequentially specify them through the real estate-related ministers' meeting."

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