Won Hee-ryong (right), candidate for Minister of Land, Infrastructure and Transport, speaks at a plenary meeting chaired by Ahn Cheol-soo (center), chairman of the transition committee, held at the Presidential Transition Committee in Samcheong-dong, Jongno-gu, Seoul on the 18th. Takeover photo reporters
The real estate policy of President-elect Yoon Seok-yeol has also reached the level of completion as the Presidential Transition Committee has been inaugurated for a month. However, it is known that the policy focused on supply expansion rather than deregulation, which was initially declared, is the main focus. This is because they were concerned about house prices wriggling after the election. To make matters worse, the announcement of the real estate policy, which is a national concern, has also been delayed. Initially, it was expected that the announcement would be made as early as this week, but this is due to differing opinions within the transition committee over the timing of the announcement.
Call for deregulation, switch to speed control due to house price insecurity
According to the real estate industry and politicians on the 18th, the transition committee formed a real estate task force (TF) at the beginning of its launch and showed an active attitude to overturn the real estate policy of the Moon Jae-in government. In order to stabilize the market, President-elect Yoon expressed his will to fulfill his promise to loosen the regulations of the current government. During his presidential campaign, President-elect Yoon proposed a full review of the 3 rental laws (limited rent for rent, right to apply for contract renewal, and cheonsei rental system), easing of reconstruction regulations, and easing of real estate tax burden.
The Real Estate TF of the Acquisition Committee cited the 3 rental law as a representative case of failure of the current government’s real estate policy and even considered the abolition of the system. In addition, it officially announced the middle of capital gains tax for multi-family owners, a one-year grace period, and activation of private rental housing. They also tinkered with the easing of the reconstruction excess profit recovery system, which is considered to be the biggest obstacle to the reconstruction project, and the promotion of exemption from detailed safety examinations for reconstruction of apartment houses older than 30 years old.
However, the signal of deregulation to revitalize supply in the city center by the acquisition committee stimulated house prices, which were looking for stability again. In the Gangnam area of Seoul, the average apartment sale price in Seoul, which had been on a downward trend as house prices rose mainly in the complexes scheduled for reconstruction, turned to a flat rate earlier this month. As the market unrest continued, both inside and outside the acquisition committee did not mention deregulation, and concentrated on ways to minimize side effects. Won Hee-ryong, a candidate for Minister of Land, Infrastructure and Transport, also emphasized a cautious approach, saying, “There is no deregulation or supply that can lead to the wrong price signal in the future blueprint of the Yun Seok-yeol government.”
Yoon Seok-yeol-pyo weighs in on supplying half-price apartments for young people and homeless people
The transition committee is expected to present the direction of deregulation on real estate in a broad framework and implement system improvement one by one while looking at the market situation. Instead, it is likely to turn to expanding supply to give the market a sufficient supply signal. In particular, the prevailing view is that the early supply of half-price apartments in the city center, which helps young people whose housing ladder has collapsed due to soaring house prices and homeless people, will be provided.
It is known that the Ministry of Land, Infrastructure and Transport and the Seoul Metropolitan Government have already formed a city housing supply execution task force to refine business models such as ‘cost housing for youth’ and ‘the first house near a station’, and to review plans to utilize public land, such as the site of the Seoul Medical Center and Yongsan Maintenance Center. Kim Jin-yu, a professor of urban transport at Kyonggi University, explained, “During the presidential election, I was able to speak out for the direction and clarity of my promises, but after I was elected, I had no choice but to find realistic alternatives without side effects because I had to take responsibility for the policies.”
Won Hee-ryong “Policy announcement at the hearing”, Ahn Cheol-soo “We will have a separate announcement”
It is a well-known fact that the real estate promise has reached the stage of completion and is in the process of internal reporting to the transition committee. However, there are different voices within the transition committee about the timing of the announcement. For this reason, it is expected that it will be revealed only after the inauguration of the next government.
Candidate Hee-ryong Won, who served as the chairman of the transition committee, said at a plenary meeting of the transition committee on the same day, “I will announce it externally at the personnel hearing of the Ministry of Strategy and Finance and the Minister of Land, Infrastructure and Transport.” There is a possibility,” he said with a different voice saying that he would have a separate announcement.
Kim Ji-seop reporter [email protected]