South Korea prepares new measures to control real estate trading in Seoul, hoping to prevent a bubble

South Korea to introduce new measures to control property trading in Seoul, aiming to prevent a bubble, requiring apartment buyers to seek permission before purchasing

March 19, 2568 at 13.16:XNUMX a.m. Bloomberg reported that South Korean government prepares new measures to control real estate trading in Seoul

South Korea's acting President Choi Sang-mok has pledged to use all available measures to prevent a property market bubble that could complicate policymakers' efforts to revive the economy.

The government announced that it will designate the districts of Gangnam, Seocho, Songpa and Yongsan in Seoul as areas where apartment buyers must obtain permits before purchasing. The Ministry of Land, Infrastructure and Transport said in a statement that the number of districts may be increased if the housing market remains hot, and that regulations on housing loans will be further tightened.

“The government recognizes the seriousness of the real estate market situation and will work with relevant ministries and local governments to respond decisively to prevent unstable housing prices from spreading,”

Condo prices in the high-income district of Gangnam have surged after the Seoul Metropolitan Government relaxed rules on permits for sale last month. Mortgage loan rates have also fallen since the Bank of Korea (BOK) changed its policy stance in October, making it easier to get a home loan.

Policymakers are concerned that the recovery in housing prices could lead to a rise in household debt, putting pressure on the South Korean central bank to hold off on further interest rate cuts at a time when many officials see the need for looser monetary policy to boost the economy.

Chang Yongsung, member of the Bank of Korea's board of directors said “We are closely monitoring the upward trend in housing prices,” He sees government measures as beneficial to market control.

Meanwhile, the government is considering an extra budget to boost the economy, which has been hit by President Yoon Suk Yeol's declaration of temporary martial law in December and Donald Trump's import tariff campaign after his return to office as US president.

refer : bloomberg.com

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