The government has set housing supply as a top priority for stabilizing the real estate market and has decided to secure additional housing sites.
Household debt management will be strengthened up to the second financial sector, and market disturbances such as market price manipulation will be cracked down throughout the year.
Deputy Prime Minister and Minister of Strategy and Finance Hong Nam-ki announced today (28th) a 'Word to the People for the Stabilization of the Real Estate Market'.
Deputy Prime Minister Hong said, "We will make the stability of the real estate market our top priority and focus on expanding housing supply in the second half of the year." He said, "We will implement the existing housing supply plan without any setback and further advance the supply schedule by one day." said.
"We will actively review various measures to secure additional housing sites," he said.
He explained that there is no shortage of supply considering that the number of occupants this year is 460,000 units nationwide and 83,000 units in Seoul, respectively, maintaining the average level, and more than 500,000 units will be supplied every year after 2023.
He also argued that "other factors besides supply and demand need to be looked at."
Deputy Prime Minister Hong pointed out, "If you look at the related psychological indicators such as the CSI for the housing price outlook, vague expectations for an uptrend are formed based on uncertainties, independent of market supply and demand," he said.
He said 'real transaction floats'They also pointed out market disturbances.
Deputy Prime Minister Hong said, “Indices measuring the level and adequacy of housing prices, such as the real apartment price, the housing purchase burden index, and the ratio of housing price to income, are approaching or already exceeding the highest level. He pointed out the possibility of adjustment, and looking at the results of a survey conducted by the Korea Development Institute (KDI) on 100 real estate expert panels, 94.6% of the respondents said that the current housing price level was overvalued.”
Deputy Prime Minister Hong said, "It is time to make a serious decision by listening to the future market and liquidity situation, objective indicators, and opinions of many experts, rather than a chase buying based on anxiety."
Deputy Prime Minister Hong said, "We will crack down on the four major real estate market disturbances throughout the year to prevent them from setting foot in the market.
The four major market disturbances are ▲ illegal use of insider information ▲ market price manipulation such as fake sales ▲ illegal brokerage such as false contracts ▲ illegal subscription to resale.
Financial Services Commission Chairman Eun Seong-soo said, "We will closely check to ensure that the regulation on the total debt-to-income ratio (DSR), which will be expanded from the 1st of this month, settles in the field without any setbacks."
In particular, we plan to thoroughly manage household loans in the second financial sector that are not subject to the strengthened DSR.
Chairman Eun explained, "We will do our best to keep the household debt growth rate at the 5-6 percent level, even with some criticism and side effects."
The government held a meeting of ministers related to the real estate market inspection today and announced this discourse today, presided over by Deputy Prime Minister Hong Nam-ki, in the presence of Minister of Land, Infrastructure and Transport Noh Hyung-wook, Financial Services Commission Chairman Eun Seong-su, and National Police Commissioner Kim Chang-ryong.