First Public Forum on Real Estate Policy to Be Held Tomorrow, Focusing on Expanding Housing Supply

The government is set to hold its first public forum to gather public opinion on real estate policy tomorrow, July 14, hosted by the Ministry of Land, Infrastructure and Transport.

According to relevant ministries, the forum will be attended by approximately 60 people, including Minister of Land, Infrastructure and Transport Kim Yun-deok, First Vice Minister Kim Yi-tak, and other ministry officials in charge of housing policy, as well as representatives from academia, the media, the housing and finance industries, real estate experts, and ordinary citizens.

As the Ministry of Land, Infrastructure and Transport is the primary agency responsible for housing policy, the expansion of housing supply is expected to be the main topic of discussion.

The forum is expected to cover the implementation status and immediate challenges of various government measures, including the September 7 policy announced last year, which set a goal of starting construction on 1.35 million housing units in the Seoul metropolitan area by 2030, and the January 29 plan from this year, which includes a plan to supply 60,000 units in prime locations within the metropolitan area.

Specifically, discussions are expected to revolve around revitalizing the supply of non-apartment housing such as urban lifestyle housing and officetels, the necessity of expanding supply through private redevelopment projects, and accelerating the implementation of the January 29 plan.

The rapidly rising issue of jeonse (lump-sum housing lease) and monthly rent prices will also be addressed in connection with supply revitalization.

According to the Korea Real Estate Board, the jeonse price growth rate for apartments in Seoul in the first week of July (as of July 6) was 0.31 percent, higher than the sales price growth rate (0.30 percent).

The cumulative growth rate for this year has reached 5.42 percent for both, as jeonse prices have continued to catch up with sales prices.

The upward trend in monthly rent also continues, with many instances of high-priced monthly rents exceeding 3 million won appearing even in the Gangbuk area.

With the transition from jeonse to monthly rent deepening, and the addition of regulations on multi-home owners such as the end of the deferral on heavy capital gains taxes leading to a decrease in jeonse listings, measures to expand the supply of quality rental housing may also be placed on the discussion table.

Plans to diversify rental housing supply tailored to various demand groups are also considered potential topics for discussion.

Opinions regarding the designation of regulated areas and land transaction permit zones, which also fall under the jurisdiction of the Ministry of Land, Infrastructure and Transport, may also be raised.

Through the October 15 measures last year, the government designated all of Seoul and 12 regions in Gyeonggi Province as regulated areas (adjustment target areas and speculative zones) and land transaction permit zones. Furthermore, earlier this year, the government newly included Hwaseong Dongtan-gu, Yongin Giheung-gu, and Guri in Gyeonggi Province—where housing prices have recently risen sharply—as regulated areas and land transaction permit zones.

In addition, various issues related to housing policy are expected to be discussed, including the revitalization of redevelopment and reconstruction projects, the abolition of the restitution system for excess reconstruction gains, the calculation of officially assessed prices which serve as the basis for property taxes, easing housing burdens for low-income families and young people, and the relaxation of building regulations.

Following tomorrow's forum, the Financial Services Commission will hold a public forum on housing-related finance on July 15, and the Ministry of Economy and Finance will hold one on tax policy on July 16.

On July 23, a grand debate on overall real estate policy will be held, presided over by President Lee Jae-myung.
※ Please note: This article was translated by AI and may contain errors.