South Korea's Finance Minister Pledges to Stabilize Soaring Housing Prices
South Korea's Finance Minister vows to take policy steps to stabilize rising house prices in Seoul and the wider capital area amid increasing volatility in the real estate market.
South KoreaHousing MarketReal EstateFinance MinisterPolicy MeasuresReal EstateJul 18, 2024
To address the issue, Choi outlined several policy steps, including increasing the supply of houses, speeding up the restructuring of real estate project financing, and controlling the rise in household debt. The government is also considering measures to curb speculative demand and prevent the market from overheating.
The move comes amid rising concerns over household debt, which has been growing rapidly in recent years. The Bank of Korea has identified household debt growth and rising home prices as key factors to watch, and has hinted at rate cuts to mitigate the impact.
South Korea's house prices have been on the rise, with a 0.04% increase in June, snapping a six-month run of declines. Prices in Seoul rose by 0.38%, the fastest rate since November 2021, according to data from the Korea Real Estate Board.
The government's efforts to stabilize the housing market are expected to have a significant impact on the country's economy, as the real estate sector is a major contributor to GDP. By taking proactive steps to address the issue, the government aims to prevent a housing market bubble and promote sustainable economic growth.
Information
The Korea Real Estate Board is a government agency responsible for regulating the real estate market in South Korea. The Bank of Korea is the country's central bank, responsible for setting monetary policy and regulating the banking system.
The Ministry of Economy and Finance is South Korea's government agency responsible for developing and implementing economic policies. The Ministry of Land, Infrastructure and Transport is responsible for overseeing the country's land use, infrastructure development, and transport policies.
Frequently Asked Questions
What is the current state of South Korea's housing market?
South Korea's housing market is experiencing a sharp rise in prices, particularly in Seoul and the wider capital area.
What measures is the government taking to stabilize the housing market?
The government is taking policy steps to increase house supplies, speed up the restructuring of real estate project financing, and control the rise in household debt.
What is the main factor driving the rise in housing prices?
The main factor is attributed to speculative demand.
What is the role of the Korea Real Estate Board in regulating the housing market?
The Korea Real Estate Board is a government agency responsible for regulating the real estate market in South Korea.
What is the impact of the government's efforts on the economy?
The government's efforts to stabilize the housing market are expected to have a significant impact on the country's economy, as the real estate sector is a major contributor to GDP.
Related News Articles
Real Estate Visionaries Honored at ET NOW.in Realty Conclave and Awards 2024
Celebrating excellence in the real estate industry
Reimagining India's Real Estate Market with Smart and Sustainable Solutions
Schneider Electric unveils innovative products and solutions to empower the next generation of homes and buildings, capitalizing on India's real estate market growth.
MUFG Bank Set to Invest in Another Indian Unicorn, Boosting Portfolio
Japanese financial giant MUFG Bank, an investor in Indian startups like InMobi and Zepto, is poised to add another Indian unicorn to its portfolio, according to sources close to the deal.
RSS and VHP Intensify Voter Mobilization in Maharashtra and Jharkhand
As the Assembly elections in Jharkhand and Maharashtra approach, the RSS and its affiliates, including the VHP, are actively mobilizing voters by highlighting issues such as 'mass conversion' and 'infiltration'. These efforts aim to consolidate support fo
Mumbai Sees 13-Year-High in Property Registrations in 2024 with Over 1.41 Lakh Units
Mumbai, Jan 1 (PTI) Mumbai city municipal area witnessed an 11 per cent increase in property registrations during the 2024 calendar year, reaching a significant number of 1,41,202 units.
MMRDA Unveils Rs 1,102 Crore Plan to Decongest Mumbai-Pune Corridor
The Mumbai Metropolitan Region Development Authority (MMRDA) has announced a Rs 1,102 crore plan aimed at decongesting the Mumbai-Pune corridor. This initiative is expected to ease the housing demand pressure in Mumbai while simultaneously boosting Pune's