Seoul: The government is set to announce measures aimed at stabilizing the housing market this week as home prices in Seoul and parts of Gyeonggi Province have seen a significant increase, according to the ruling Democratic Party (DP) on Sunday. This move comes in response to growing concerns over housing affordability and market stability.
According to Yonhap News Agency, the decision follows a meeting between DP leader Jung Chung-rae, Prime Minister Kim Min-seok, and senior presidential aides, where they deliberated on crucial policy issues. The meeting was timely as the National Assembly is preparing to commence its annual audit.
Rep. Park Soo-hyun, the chief spokesperson for the DP, stated during a briefing that the government would announce the measures to stabilize the housing market at an appropriate time this week. The discussion underscored the necessity for “fundamental and comprehensive” solutions to address the rising home prices in Seoul and parts of Gyeonggi Province, emphasizing the need for vigilant monitoring.
Park expressed concerns that instability in the housing market could undermine housing stability, increase household financial burdens, and diminish private consumption. Consequently, the ruling party and the government have agreed to maintain close vigilance and work towards resolving the issue.
This announcement will mark the third intervention by President Lee Jae Myung’s administration to address rising housing prices. Earlier efforts included tightening household lending regulations in June and announcing plans to increase home supplies in the greater Seoul area in September.
Industry experts speculate that the government may further tighten household lending rules or designate more areas for stricter real estate regulations. However, a hike in housing-related taxes seems unlikely to be part of this week’s measures due to potential negative public sentiment ahead of local elections scheduled for June next year.
In addition to DP floor leader Kim Byung-ki, the meeting at the prime minister’s residence, which took place on the last day of the extended Chuseok holiday, was attended by presidential chief of staff Kang Hoon-sik and senior presidential secretary for political affairs Woo Sang-ho. The closed-door session also addressed reform agendas and livelihood-related policies to be pursued in the upcoming regular parliamentary session.
The DP has been advocating for a series of legislative reforms and has called on Supreme Court Chief Justice Cho Hee-dae to appear before the Legislation and Judiciary Committee’s audit session on Monday.