SEOUL, SOUTH KOREA, August 27, 2018 — Seoul Here are the Seoul Metropolitan Government’s stance and policy direction regarding the recently unstable real estate market.
First, the Seoul Metropolitan Government will put off the announcement and development of the Yeouido & Yongsan Master Plan.
The Seoul city government is deeply concerned about the signs of overheating in the housing market. Seoul fully agrees with the central government’s stance which prioritizes stabilizing the housing market for people’s stable housing environment. In this regard, the Seoul city government will put on hold the announcement and development of the Yeouido & Yongsan Master Plan until the housing market becomes stabilized, in consideration of the serious situations in the recent real estate market.
Second, the Seoul city government will sharply increase the supply of public houses to stabilize the real estate prices.
Seoul will work on the supply of 240,000 units of Seoul’s public rental house as planned, which was announced on 22nd Feb. If Seoul’s effort is added into the 270,000 units of public house, public rental house will account for about 10% of the total number of houses. If so, citizens can expect their living environments to be stabilized further. Also, it can have a certain degree of impact on the real estate market prices.
As one of the policies to achieve the balanced development in Gangnam and Gangbuk areas, Seoul announced a plan to purchase 1,000 units of empty house and supply 4,000 units of rental house. Utilizing empty houses can lead to an increase in the stock of houses. The Seoul city government will further expand the supply of public houses by utilizing empty ones, based on the central government’s funding support and the improvement of laws and institutions
Third, the Seoul Metropolitan Government will cooperate with the central government to realize the principle of substantial taxation through realistic posted prices.
Realistic posted price is an important means to collect tax from unearned income of the acquisition and possession of real estate. The posted price, which is a reference point for various types of taxation, should be based on the actual transaction price.
To fully reflect the actual transaction price into the posted price, the local government must perform its role as it has a good understanding of the local situation. Seoul will work together with the central government by figuring out the accurate price of actual transaction in Seoul, so that it can realize the principle of substantial taxation.
Already, the Seoul city government has actively cooperated with the central government for stable living environment and real estate market. Seoul will spare no effort in the joint response from now on. The Seoul Metropolitan Government will do its best to stabilize the real estate market. Its effort will include the crackdown on illegal transaction of real estate and a thorough reinstitution of development profit from reconstruction and large-scale development. To respond to the current status of the real estate market, in particular, the Seoul city government will immediately set up the “real estate monitoring team” under the direct supervision of Deputy Mayor of Seoul and operate the team until the real estate market is stabilized.