President Lee Holds Second Housing Policy Meeting as Supply Plan Nears
Summary
- The government said it is reviewing new housing sites, supply measures, the number of homes to be built and steps to speed up delivery ahead of announcing the package.
- The government said it has announced a tax revision plan centered on taxes, supply and finance that would increase the tax burden on ultra-high-priced homes, non-owner-occupied homes and owners of multiple properties.
- Officials are also reviewing plans to secure large-scale new residential land through the use of semi-industrial zones in the Seoul metropolitan area, the lifting of greenbelt restrictions and a 50,000-home supply plan, along with possible easing of lending regulations related to supply projects.
Forecast Trend Report by Period
President Lee Jae-myung will hold a second closed-door meeting on August 7 ahead of the government's announcement of housing supply measures. The follow-up session comes four days after a first meeting on August 3 that lasted about seven and a half hours.
Lee will chair the second real estate policy review meeting at 2 p.m. at the presidential office.
The meeting will focus on new housing sites, supply volumes and ways to bring forward the delivery timeline. With the presidential office saying additional measures will be announced soon, the session amounts to final coordination before the package is unveiled.
Lee chaired the first meeting on August 3 immediately after returning from a South America trip and going to the presidential office. He instructed officials to secure as much housing supply as possible so that a large number of homes can be delivered quickly, while also finding ways to speed supply through available administrative steps and through financial, fiscal and regulatory easing.
The government's real estate package is centered on taxes, supply and finance. It previously announced a tax revision plan that would protect single-home owners living in their homes while increasing the tax burden on ultra-high-priced homes, non-owner-occupied homes and owners of multiple properties. The supply measures are the next step in efforts to stabilize home prices.
Officials in and around the presidential office are discussing ways to secure new residential land by using semi-industrial zones in the Seoul metropolitan area and lifting greenbelt restrictions. Some have mentioned a plan to supply 50,000 homes, though the final scale could be larger.
Financial support measures for supply projects are also under review. The government is examining ways to maintain its stance on household debt controls while partially easing lending regulations for project loans tied to housing supply.
The speed of supply is also a key issue. At a public debate on real estate policy on July 23, Lee said the government was internally reviewing ways to cut procedures by more than half.
Kim Yeon-ji, Hankyung.com reporter kongzi@hankyung.com
Korea Economic Daily
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