Housing Prices to See Moderate Rise Post-May 9, Government Assures Supply

Kim Yong-beom, Senior Presidential Secretary for Economic Affairs, anticipates a gradual increase in housing prices following the expiration of the capital gains tax deferral for multiple homeowners on May 9th. He expressed confidence that the government's stance on taxation, which has been communicated to the market, will moderate any price surges, countering predictions of a sharp rise similar to late last year.

Kim highlighted a significant increase in property listings in premium areas like Gangnam, Yongsan, and other parts of Seoul, noting that prices in these areas have begun to decline. This trend, where high-demand areas lead a price downturn, is considered historically unusual. The secretary also pointed to a substantial rise in transaction volumes as sellers sought to capitalize on the expiring tax deferral, with data showing a 32% increase in Seoul apartment listings by multiple homeowners in March compared to the previous year's monthly average.

Further analysis indicates a positive shift in the buyer demographic, with 73% of recent buyers being first-time homeowners and 45% being under 30. This suggests a potential easing of intergenerational wealth disparities. Regarding loans for non-resident single-homeowners, Kim indicated that while new loans will be restricted, the government is exploring measures for existing ones. He also touched upon the ongoing efforts to secure the planned supply of 60,000 housing units in the Seoul metropolitan area, acknowledging past construction delays but emphasizing accelerated coordination among relevant ministries.