Korean govt. to release detailed measures for real estate market 수도권 주택 공급 축소 계획 본격화

Korean govt. to release detailed measures for real estate market 수도권 주택 공급 축소 계획 본격화


As part of efforts to revitalize the slumping
housing market and promote consumption, the Korean government has unviled plans to cut the supply of new homes
in Seoul and surrounding areas. The government also plans a tax cut for home
buyers. Ji Myung-kil reports. Korea’s Finance Minister and Deputy Prime
Minister Hyun Oh-seok said on Wednesday the government will scale back planned supply
of new apartments and houses to help revitalize the country’s housing market. Hyun told a meeting of economic policymakers
that the reduction is necessary in view of dwindling demand for new houses. Under a proposal prepared by the Ministry
of Land, Infrastructure and Transport, the government will either cancel or delay the
planned supply of 180,000 housing units in Seoul and surround areas over the next three-and-a-half
years. About a third of Korea’s 50 million population
reside in the metropolitan areas. The government will also provide soft loans
to buyers of unsold apartments to promote housing transactions. Prices of houses have been dropping in recent
years, promting many potential buyers to seek rents. That led to soaring prices in ‘jeonse ‘… a
unique Korean system where people deposit a large key money which is repaid after their
rental contracts expire. To help solve the jeonse problem the government
will offer governemnt-built apartments for rents at relatively low prices. “In order to ease instability in the housing
rent market the supply of government-financed homes for rents will continue to be expanded.” Wednesay move come less than four months after
the government introduced tax breaks and other benefits to first- time home buyers. Seoul officials said a cut in property acquisition
tax will also be announced as early as August to inject vitality into the slumping property
market. Ji Myung-kil, Arirang News.

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