The government and the city of Seoul have begun to evolve to calm housing prices in Seoul, which are currently overheating. First, the Seoul Metropolitan Government decided to suspend the development plans of Yeouido and Yongsan, which are considered the epicenter of rising house prices. The government announces additional regulations, such as the expansion of speculative territory. It has been a year since the real estate crisis of 2 August last year.
Park Won-soon, the mayor of Seoul, said on 26 May: "The recent housing market is showing signs of overheating and I am very worried." The announcement and promotion of the Yeouido and Yongsan master plan will be suspended until the housing market stabilizes,. Previously, mayor Park announced his dream to develop Yoido and Yongsan in Singapore, where he won the award for Lee Kuan Yew. "We will redevelop Yeouido through the city and cover the railway between Seoul Station and Yongsan Station and build shopping centers and parks."
Park's comments became the fuse of rising house prices. The rise in the value of house prices in Seoul, which stagnated since April when the tax office started for several lenders, has been revived. Yeouido and Yongsan house prices jumped more than 100 million won in a month due to the development forecast. Last week apartment prices in Seoul rose to 0.37 percent, up from 0.33 percent just before the real estate crisis of 2 August last year.
Park said: "I fully agree with the government's position that the stability of the housing market must have the highest priority for ordinary people to stabilize housing."
The announcement comes in the middle of the announcement by the government of additional speculation this week about property speculation. The government will hold a meeting on economic issues on June 23 and said: "In the near future we will investigate additional designation of speculative region, speculative superheat zone and adaptation target area and actively agree to speculative demand inflows in overheated areas."
The government is planning to expand speculation areas in Seoul, where housing prices are running. Seoul already has 25 districts, all of which deal with controlled areas and speculative overheated districts, of which 11 are designated as speculative areas. When applied to the speculative area after the area to be controlled and overheated speculative area, it will be subject to general regulations, including subscription, transfer tax, reconstruction and loan.
It is considered a candidate for speculative districts, four districts, including Dongdaemun, Jongro and Junggu, are considered. House prices rose more than 0.5 percent in August, the government said. The government is also expected to add part of the metropolitan area of Seoul to speculation and overheating of districts to prevent housing prices in Seoul from expanding to the metropolitan area of Seoul.
Unlike in Seoul and the metropolitan area, the number of unsold pre-sale properties is expected to fall in regions where house prices fall. Professor Kwon Dae-jung, a professor at the University of Myongji, said: "Despite the short-term measures to cool the overheated market, we still need fundamental measures to calm the still unstable housing prices, despite the 8-2 measures from last year."
Hwang, Yeong-young, Lim Sun-young, reporter [email protected]