Oh Se-hoon "Actively Welcomes Improvement of 'Price Ceiling System' Blocking Housing Supply in Seoul"

On the 10th, expression of opinion on Minister of Land, Infrastructure and Transport Noh Hyung-wook's remarks on SNS
"Due to the 분상제, the supply of 12,000 housing units in Dunchon Jugong reconstruction delayed"

[Asia Economy Reporter Onyu Lim] Seoul Mayor Oh Se-hoon expressed his "active welcome" for the government's efforts to improve the system related to the price ceiling on pre-sale apartments.

On the 10th, Mayor Oh wrote on his Facebook (SNS), "I welcome Minister of Land, Infrastructure and Transport Noh Hyung-wook's change in perception." On the 9th, Minister Noh revealed his intention to review improvements to the pre-sale price ceiling system and the high pre-sale price review system during a meeting with the housing construction industry.

Mayor Oh cited the Dunchon Jugong reconstruction apartments in Gangdong-gu as an example, pointing out, "Due to the pre-sale price ceiling system that fails to properly reflect reality, an absurd situation is occurring where housing supply cannot proceed because pre-sale prices cannot be determined in the heart of Seoul." He added, "In addition to the approximately 12,000 households in Dunchon Jugong, the number of households in Seoul whose supply is blocked by the pre-sale price ceiling system reaches as many as 60,000."

Mayor Oh strongly argued for the need to improve the system by highlighting problems with the regulations related to pre-sale prices. He said, "The current pre-sale price ceiling system, which serves as the standard not only for interim payment loan criteria but also for special supply criteria, lacks rationality in reflecting market conditions by region," and pointed out, "Above all, the expertise and independence of the pre-sale price review committee are not being respected."

He also conveyed Seoul City's intention to actively propose and negotiate with the Ministry of Land, Infrastructure and Transport regarding review standards and management systems related to the pre-sale price ceiling system. Mayor Oh said, "I ask the Ministry of Land, Infrastructure and Transport to actively improve the pre-sale price ceiling system so that it does not hinder housing supply and interim payment loans for genuine homebuyers without homes."