Adjustment of High-Value Housing from 900 Million to 1.2 Billion
Official Price Frozen at 70% of Actual Transaction Price
Initial Loan Interest Support for Youth and Newlyweds
Former lawmaker Na Kyung-won, a candidate for the People Power Party's Seoul mayoral primary, is speaking at a startup meeting held on the 3rd at Tipstown S6 in Gangnam-gu, Seoul. Photo by Yoon Dong-joo doso7@
[Asia Economy Reporter Lee Hyun-joo] Na Kyung-won, a former lawmaker and the People Power Party's main candidate for the Seoul mayoral by-election, announced on the 5th that she would cut property tax in half and raise the high-priced housing threshold in Seoul from 900 million KRW to 1.2 billion KRW.
At a press conference held at the National Assembly that day, Na Kyung-won unveiled her real estate pledges. First, she stated that she would reduce property tax by 50%, raise the high-priced housing threshold, and freeze the official property price at about 70% of the actual transaction price. Additionally, for single-homeowners with properties valued at 1.2 billion KRW or less, she promised a 50% property tax reduction and to raise the capital gains tax heavy taxation threshold from 900 million KRW to 1.2 billion KRW. She also mentioned plans to discuss with the National Assembly to allow long-term holders to receive reductions in comprehensive real estate holding tax.
She further announced that for youth and newlyweds, initial loan interest would be fully supported for three years, and housing priced around 10 million KRW per pyeong would be supplied near university areas close to subway stations. Reflecting regional characteristics, she pledged to reduce the gap between Gangnam and northern Seoul through customized urban development and to implement a one-stop review process for reconstruction and redevelopment projects.
Her housing supply target is 70,000 units annually, totaling 700,000 units over ten years, consisting of 400,000 private units, 200,000 public rental units, and 100,000 units for youth and newlyweds.
She also criticized the Moon Jae-in administration's real estate policy announcement made the previous day as effectively admitting policy failure. Na Kyung-won said, "They claimed that expanding supply is meaningless and that the price surge is due to speculative demand, but now, with less than a year and a half left in their term, they have announced policies they cannot even uphold within this administration’s term," adding, "Most of the planned supply sites are privately owned land, making it highly unrealistic."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
