6 out of 10 Real Estate Experts Say "House Prices This Year... Seoul ↑, Provinces ↓"

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[Asia Economy Reporter Jin-ho Kim] Six out of ten real estate experts expected the sales prices of housing (apartments, etc.) in Seoul to rise this year compared to last year. On the other hand, non-metropolitan area housing prices were predicted to decline compared to last year.

The Federation of Korean Industries and the Korea Real Estate Society disclosed the results of the "Expert Opinion Survey on Housing Policy for the Next Government" on the 23rd. The survey was conducted with 55 experts affiliated with the Korea Real Estate Society.

First, regarding this year's Seoul housing sales prices, the most common forecast (27.3%) was an increase between 0% and 5%. For non-metropolitan area housing (apartments, etc.), the prevailing outlook was a price decline compared to last year. The most frequent response (30.9%) predicted a decrease between 5% and 10%.

When asked about the most urgent housing policies the new Yoon Suk-yeol administration should implement to stabilize housing prices, responses were high for easing reconstruction and redevelopment regulations (25.7%), expanding public housing (20.8%), and temporarily easing capital gains tax for multi-homeowners (20.8%). Following these were reductions in housing holding tax (10.9%), reforming the rental business system (9.9%), and expanding real estate mortgage loans (5.9%).

More than half (58.2%) of real estate experts expected the stabilization of housing prices in Korea to occur after two years. Regarding the medium- to long-term direction of housing-related taxation, more than half (54.5%) responded with "strengthening holding tax and easing capital gains tax." Real estate experts agreed that the next government should focus on policies such as deregulation, expanding supply volume, and improving housing-related tax systems to stabilize housing prices and promote residential stability for the public.

Nine out of ten real estate experts evaluated the Moon Jae-in administration's real estate policies over the past five years as "insufficient." They cited the significant rise in housing prices due to policies that failed to reflect the market as the cause. The most insufficient housing policies were identified as ▲the three rental laws including the rent ceiling system (24.2%), ▲strengthening reconstruction and redevelopment regulations (21.1%), and ▲strengthening capital gains tax on multi-homeowners (18.9%). These were followed by ▲strengthening real estate loan regulations (10.5%), ▲increasing housing holding tax (9.5%), and ▲strengthening rental business regulations (6.3%).

Yoo Hwan-ik, head of the Industry Division at the Federation of Korean Industries, stated, "Economic and social side effects are occurring due to housing instability caused by recent housing price increases," and suggested, "To ensure residential stability for the public, the next government should implement housing policies that normalize the private housing market through deregulation and expand residential welfare facilities for low-income citizens through public investment."

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