Government to loosen all regulated areas except for the metropolitan area and Sejong

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As house prices have continued to fall in recent years, the government has decided to loosen real estate regulations in most areas of the country except for the metropolitan area and Sejong City.

Where the restrictions are gone, you can get more loans when you buy a house in the future, and the tax a person who owns a home has to pay when buying another house is reduced.

The changes will be explained in detail by reporter Han Sang-woo.

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As the local real estate transaction regulations were loosened, the government explained this.

[Kwon Hyuk-jin/Director of Housing and Land Office, Ministry of Land, Infrastructure and Transport: We believe that the downward stabilization of house prices has been established, and especially considering that the transaction volume is shrinking, it was decided that the normal housing transactions of end-users should be refreshed.

] It is said that regulation is no longer meaningful in provinces where the number of unsold homes has fallen sharply.

Accordingly, all regions of the country except the metropolitan area and Sejong were excluded from the adjustment target area.

In Gyeonggi-do, restrictions were lifted in Anseong, Pyeongtaek, Yangju, Paju, and Dongducheon.

In the provinces, Busan Haeundae-gu, Suyeong-gu, and Daegu's Suseong-gu are representative places where restrictions have been lifted.

If a person who owns a house wants to buy another house in this area, he had to pay an acquisition tax of 8% of the house price and a person who owns two houses 12%.

It is also exempt from the estate tax imposed on people who own multiple homes.

[Kim Gyu-gyu / Head of Asset Succession Research Institute at Korea Investment & Securities: There are voices expecting the effect of stopping the price decline as the heavy taxation penalty is lifted and loan regulations are relaxed, but

it is unlikely to have a significant effect right away due to the unfavorable market conditions.]

All of Seoul and major areas in the metropolitan area such as Bundang, Gwacheon, Hanam, and Suwon in Seongnam are grouped as speculative overheated districts.

The government said that the purchase demand for housing in the metropolitan area is still there, and it is necessary to keep an eye on it as the decline has just begun.

(Video coverage: Jeong Seong-hwa, Kim Min-cheol, video editing: Lee So-young)

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Reporter Han Sang-woo from the Ministry of Economy is here.

[Reporter Han Sang-woo: In Seoul, house prices have been falling for three months.

So, the government also announced that Seoul and Gyeonggi Province would consider lifting regulations if this stagnation continues for a long time.

But still, looking at the housing subscription rate and purchasing psychology, the position is that it should not be released.

Now, house prices in the metropolitan area have just stabilized, but they are worried that the regulations will be lifted and they will return to an upward trend.

(So, the government is worried about this, lest housing prices in the metropolitan area fluctuate again after loosening the regulations for nothing?) That's right.

And in Seoul, apartment prices that are 700 million won lower than the highest price seem to have dropped a lot, so you must feel.

In fact, this is a very unusual rush sale.

If you look at the rate of decline in apartments in Seoul this year, in reality, it has only fallen by 1.15%.

It is a situation where the landlords are still holding on to a certain extent rather than selling the property by drastically lowering the price.

On the other hand, in provincial areas, the government loosened the regulations first because the decline was large and the period of decline was long, such as a 5% or more drop in Daegu

[Reporter Han Sang-woo: In the case of Sejong City, house prices fell by 7%, the largest in the country.

In addition, Yeonsu-gu, Incheon, where Songdo is located, also fell by about 3%, and these two places were excluded from the speculative overheating district, which has stricter regulations, but are still tied as areas to be adjusted.

We see that there is still demand for housing for these two places and it is not yet completely stable.]