Price rises up to 4%... Upper limit lifted, but compromised for house price

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At the same time, the government said that it would take a look at the price cap system.

The upper limit on the sale price is a system that sets the construction cost and additional cost on the land price when building an apartment, and prevents the sale price from being lower than the surrounding market price and not exceeding a certain amount.

The government decided to maintain this system, but raise the sale price by up to 4%.

To see how the market will react, we will read the report of reporter Han Sang-woo first and continue the story.

<Reporter>

Apartments that are developed by the government such as new towns and many reconstructed and redeveloped areas are subject to the upper price limit system.

It is a system that controls house prices by setting the sale price at 80% of the surrounding market price, but the construction industry and landlords have opposed the policy as a policy to block supply.

The government, which has been reviewing the reform plan, has decided to include the redevelopment and reconstruction association operating cost, interest for moving members, and moving costs for existing tenants in the pre-sale price calculation.

Also, in a situation where the price of major materials such as ready-mixed concrete and reinforcing bars jumps sharply like now, we decided to reflect it in the sale price as soon as possible.

Taking this into account, the sale price is expected to rise by up to 4% in the second half of the year.

When I applied this standard to a reconstruction site in Seoul, the pre-sale price for an 84-square-meter house rose from 620 million won to 25 million won more.

[Won Hee-ryong/Minister of Land, Infrastructure and Transport: Concerns about prices and the increasing burden on the public were reviewed in depth from various aspects and decided at an appropriate level.]

It is evaluated that the government has come up with a compromise plan without burdening the government's biggest concern, inflation, while not stimulating the real estate market, which has found stability.

[Lee Eun-hyung / Research Fellow, Korea Construction Policy Research Institute: Assuming that the real estate market is stable by 15%, 20% (sale price increase), the policy direction will have the opposite effect.]

On the other hand, as the president promised, The Reconstruction and Redevelopment Association, who had been looking forward to it, is responding with disappointment.

(Video coverage: Park Young-il, video editing: Jung Yong-hwa)

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<Anchor>

Here is reporter Han Sang-woo, who just gave me the report.

[Reporter Han Sang-woo: There is a thing called Bogeumjari Loan that allows young people and newlyweds to get a loan when they buy a house and pay it back for 40 years.

This allows you to choose the method of paying a small amount of principal and interest at the beginning and paying more later.

Pay less when you are young and pay back more when you earn more later.

Applying this method has the effect of reducing the principal and interest to be paid in the first 10 years by 15 million won when borrowing 300 million won.]

[Reporter Han Sang-woo: Even if you own a house now, if you buy a house with an official price of 300 million won or less in the province, this will be deducted from the house when calculating the estate tax.

Also, there are often people who inherit a house from their parents.

The inherited house was to be deducted from the estate tax calculation for 5 years.

And again, the house I inherited was cheap, so I decided to subtract it from the calculation.]

[Reporter Han Sang-woo: First of all, the right to apply for contract renewal, which allows the tenant to claim to live 2 more years by looking at the 3 rental laws, Also, the upper limit that prevents the landlord from raising the rent by more than 5%, these parts were kept as they were in the broad framework.

Two years have passed since the enforcement of the 3rd lease law, and the market has adapted to some extent, but it is not necessary to overturn this and increase the impact.

Also, if you want to revise the 3 rental laws, you have to do it in the National Assembly.

However, the opposition party is the majority, and it seems to have taken this into account.]

[Reporter Han Sang-woo: Even when the government announced today, there were also prospects such as expansion of supply, strengthening of market functions, etc.

However, we can see that the government has made some compromises.

The government's inflation target for this year is 4.8%.

A compromise point that can reduce the dissatisfaction between the construction company and the homeowners of the reconstruction without stimulating the price level, preventing the house price from fluctuating.

From that point of view, it can be seen that the price increase was set at a maximum of 4%.

So, if you look at today's announcement comprehensively, it can be seen that , rather

than

overturning the previous administration's policy, we will change little by little by looking at the market situation in the future.

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"For Tenant Protection"