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S. Korean gov't vows to supply more houses to tame soaring prices
Updated: 2021-07-29 07:32:24 KST
South Korea's housing market is getting hotter than ever despite efforts by the government over the past couple of years.
Finance Minister Hong Nam-ki in a joint briefing with related ministers on Wednesday once again vowed to go all out to tame the country's runaway house prices by focusing on increasing supply.

"Our number one goal would be to supply more homes in the country. The government will supply houses according to the plan and will strive to provide them as soon as possible. Also, we will be open to all possibilities to secure new housing sites."

Hong also said it's not the time to buy houses out of fear of being priced out of the market because there's chance that house prices could fall by more than market expectations. He said the reasons for that include a potential rise in interest rates and the start of public housing subscriptions in the second half of the year.
The Minister of Land, Infrastructure, and Transport Noh Hyeong-ouk also pledged to strictly carry out the plan to build some two million, fifty thousand new public housing units across the country by 2030, including one.eight million units in the capital area.
It includes finalizing the district plan by the end of this year for some 240-thousand new public houses at designated areas including the six sites for the third stage of South Korea's New Town Developments Plan.
But an expert says as it takes at least a couple of years for any planned houses to be built, more houses should be put up for sale including those from multiple home owners.

I have a positive view of the government's announcement to enforce the housing supply plan. But as it takes time, some changes in the policies are needed to raise the number of properties on sale in the market.

Another expert says, there are supply shortages because of the capital gains tax.

"Transaction tax including capital gains tax on home sales is too heavy compared to other OECD member countries. Home owners cannot sell their properties because of the considerable amount of tax imposed on gains."

The announcement also includes plans to prevent an influx of liquidity by keeping the rise in household debt below 6 percent, as well as continuing the all-out war against property speculation.
Eum Ji-young Arirang News.
Reporter : jy_rachel@arirang.com