▲ Minister of Land, Infrastructure and Transport Hong Ji-seon answers lawmakers' questions during a parliamentary audit of the Ministry of Land, Infrastructure and Transport held by the Land, Infrastructure and Transport Committee of the National Assembly on the 7th.
Minister of Land, Infrastructure and Transport Hong Ji-seon stated today (the 7th) regarding the land transaction permit system applied to all of Seoul and 12 areas in Gyeonggi Province until the end of this year, saying, "We believe there is demand," and adding that the ministry will review whether to extend it while monitoring market conditions.
Regarding the measure to require local governments to consult with the Ministry of Land, Infrastructure and Transport in advance and analyze market impacts when lifting land transaction permit zones on a large scale, she said, "It is necessary to apply such measures if needed."
In response to a question from People Power Party lawmaker Kim Jung-ja during the parliamentary audit of the ministry by the National Assembly's Land, Infrastructure and Transport Committee, Minister Hong answered, "We are continuing to closely monitor market conditions," addressing whether the designation of land transaction permit zones will be extended.
When lawmaker Kim asked again, "Does that mean you will review and extend it while monitoring [market conditions]?", Minister Hong explained, "Judging by the current situation, we believe there is a certain level of demand for the land transaction permit system."
She showed a cautious stance on the possibility of expanding land transaction permit zones to metropolitan areas where housing prices have recently risen, such as Incheon, Namyangju, Pyeongtaek, and Osan in Gyeonggi Province.
Minister Hong stated, "Land transaction permit zones are not a matter for the Ministry of Land, Infrastructure and Transport to simply decide to designate or not; we need to comprehensively look at housing price increases, subscription competition rates, and other factors, so this is not the stage to give a decisive answer," and added, "We will closely observe and review the housing market."
Asked by Democratic Party of Korea lawmaker Chang Jong-tae for her stance on making it mandatory for local governments to conduct prior consultations with the ministry and analyze market impacts when lifting large-scale land transaction permit zones at the metropolitan level, Minister Hong replied, "I believe it is necessary to apply such matters when needed."
In response to criticism from People Power Party lawmaker Kang Dae-shik that Seoul's housing prices surged after the expansion of land transaction permit zones last year, she answered, "I think housing prices were kept at this level precisely because we implemented the land transaction permit system," and asked, "Housing prices did not rise because of the land transaction permit system, did they?"
Diagnosing the recent situation in the Seoul housing market, she noted, "Housing prices in the Gangnam 3 districts and Yongsan-gu have turned negative to some extent, and the rate of housing price increases in other areas is also shrinking."
She further stated, "We forecast that by the end of the year, housing prices will stabilize to a certain degree and the magnitude of increase will decrease."
Regarding this year's housing construction starts in the metropolitan area, Minister Hong forecasted that it would be difficult to achieve all of the initial plans.
She said, "It is true that the performance for [metropolitan] supply targets is slightly lower than originally planned by the state," adding, "Looking at this year's statistics and planned volume, it seems difficult to secure 100 percent of the planned volume."
However, she noted, "There was a tendency for housing construction starts to be concentrated in the fourth quarter last year and the year before last," and added, "We expect to achieve about 80 to 88 percent [of the planned volume]."
Regarding recent remarks by Korea Land and Housing Corporation (LH) President Lee Sung-hoon on the need to tighten loan regulations, she said, "Those were principled remarks made from the perspective of household debt," and added, "This is not a matter for the Ministry of Land, Infrastructure and Transport to handle alone; we must also consult together with the Financial Services Commission and tax authorities."
(Photo: Yonhap News)
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