PROPERTY REGULATIONS LIFTED IN MORE AREAS

[Anchor Lead]

Housing prices are nosediving day by day. With the real estate market woes getting worse, the government decided to lift regulations in more areas as early as mid January.

[Pkg]

The only areas subject to real estate regulations are Seoul, Gwangmyeong, Gwacheon, Hanam and Seongnam. With the real estate market woes getting worse by the day, last month the government lifted regulations nationwide except for these five areas. However, apartment prices nosedived even further on-week, plummeting point-7-2 percent in Seoul and point-9-1 percent in the capital region. The government decided to lift regulations in more areas as soon as possible.

[Soundbite] Choo Kyung-ho(Finance minister(KBS Sunday Diagnosis)) : "Some of the areas are still subject to regulations. We will announce their lifting in January."

When announcing economic policies for 2023, the government vowed to ease real estate regulations early next year, in January to be exact. Once the regulations are lifted, there will be no restrictions with regard to mortgages. Homeowners will have to pay less in taxes and will be allowed to sell their properties even before they are built. The measures are expected to slow down the rapid plunge in real estate prices. However, some point out it's unclear if the measures will be immediately effective, as the real estate market is in a serious crisis due to rising interest rates.

[Soundbite] Lee Eun-hyung(Korea Research Institute for Construction Policy) : "When mortgage caps are lifted, conditions for housing transactions will be improved, but it's hard to say if there will be more transactions, because no one knows for how long the U.S. will raise key rate."

Finance Minister Choo Kyung-ho says the bill on easing the capital gains tax for multiple-home owners will be submitted to the National Assembly in February. He stressed if the announced measures produce no effect after months of implementation, the government will take additional action.