Kweon Seong-dong, the floor leader of the People Power Party, said on the 15th, “I will promote an active apartment sale price reduction inducement policy as a presidential campaign pledge.”
Kweon noted during the intra-party policy meeting that “the rise in sale prices is leading to a vicious cycle of construction market stagnation.”
He said, “For the first time in 15 years, the average sale price of newly built apartments nationwide has exceeded the average transaction price of existing apartments.”
He continued, “Due to concerns that if one receives an apartment sale, the house price could fall below the sale price rather than a price difference, the term 'lotto sale' is a thing of the past, and now there are even self-deprecating remarks about 'continuous sales.'” He added, “Due to the burden of high sale prices, instances of abandoning apartment development projects are emerging, and in non-capital regions, the risk of unsold apartments is worsening.”
As specific measures to induce a reduction in sale prices, Kweon stated that he would ▲adjust the floor area ratio and building coverage ratio upwards for new apartment construction, including reconstruction and redevelopment, ▲adjust the scale of dwellings and housing construction ratio, ▲ease the burden of infrastructure installation costs, and ▲support the mediation of construction cost disputes.
He also mentioned that he would prepare reasonable alternatives to excessive real estate market regulations such as ▲the recovery system for excess profits in reconstruction ▲the right to request lease contract renewal and monthly rent cap ▲higher taxation for multiple homeowners ▲uniform total debt repayment ratio (DSR) regulations, and adopt them as pledges.
Kweon stated, “I will humbly accept the criticism that the government's existing real estate policies have not reflected the characteristics and demands of different regions,” and added, “In the future, the People Power Party's real estate policy will focus on the three axes of Seoul, the capital region, and non-capital regions, developing customized policies suited to local conditions.”
He further mentioned to reporters immediately after the meeting, “I have only expressed the broad principles related to real estate policy, and I think specific policies need further discussion from the pledge task force.” He added, “Once the final plan is ready, I will speak again.”