GOVT MEASURES TO STABILIZE REAL ESTATE MARKETS

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Policymakers are preparing another set of measures to tamp down the heated real estate market. The ruling Democratic Party plans to pass property-related bills including the imposition of heavy taxes on owners of multiple homes during the July session. However, the opposition United Future Party criticized the inconsistency of government policy and proposed a deregulation plan to boost supply.

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​The Democratic Party vowed to use all its resources to eradicate real estate speculation.
Part of the measures include levying heavier taxes on owners of multiples homes and speculators. Financial assistance programs will be provided to select groups including first time home buyers, and taxes will be lowered for long-time homeowners. The ruling party plans reduce the burden of tenants and provide more housings to actual home buyers. The DP stressed that relevant bills will be passed during the July parliamentary session.

[Soundbite] CHO JEONG-SIK(CHAIR OF POLICY PLANNING COMMITTEE, DEMOCRATIC PARTY) : "We plan to review follow-up plans of previous real estate measures and table a revised bill as soon as possible to pass it during the July session."

However, during an emegency meeting, the main opposition United Future Party highlighted that real estate speculation was fueled by the government's inconsistent policies. The conservative bloc pointed out that tax and loan restriction plans will only deter actual home buyers. The UFP also mentioned that real estate laws should be focused on expanding supply rather than suppressing demand. Some even proposed boosting housing supply by increasing the floor space index and relaxing the requirements for redevelopment or reconstruction.

[Soundbite] LEE JONG-BAE(CHAIR OF POLICY PLANNING COMMITTEE, UNITED FUTURE PARTY) : "We will push for reliable and trustworthy real estate policies. We will also work to stabilize prices in the market by steadily expanding supply."

Meanwhile, the Justice Party proposed legislating a law that forces high-ranking officials in Cheong Wa Dae, the government, and the National Assembly to sell homes they own but don't reside in.