Minister Noh Hyung-wook: "Housing Market Enters Early Stabilization Phase... Indicators Positive"

Minister Noh's Meeting with Ministry of Land Journalists
"Indicators Positive... Increase in Price Drop Volume"
"No Policies Targeting Specific Areas like Gangnam"
"3rd New Town Land Compensation Proceeding Smoothly"
"Reconstruction Promotion Will Improve Once Stability Is Firm"
Cautious on Capital Gains Tax Relief Due to "Concerns"

Minister of Land, Infrastructure and Transport Noh Hyung-wook is speaking about the real estate market and policy directions at a press briefing with reporters from the Ministry of Land, Infrastructure and Transport held at the Government Sejong Complex on the 28th. (Photo by Ministry of Land, Infrastructure and Transport)

Minister of Land, Infrastructure and Transport, Noh Hyun-wook, recently commented on the real estate market situation, stating, "Positive signs are appearing in the indicators," and added, "I believe the housing market is in the initial stage of entering a stabilization phase."

At a press briefing held at the Government Complex Sejong on the 28th, Minister Noh said, "the weekly housing price increase rate is showing a slowing trend." Recently, as buying sentiment has weakened, apartment price growth rates in housing statistics from sources such as the Korea Real Estate Board have been shrinking, which Minister Noh interpreted as the beginning of a stabilization phase.

Minister Noh explained, "Indicators related to buyer dominance in the real estate market sentiment are improving," and "the volume of transactions that have declined in the actual market seems to be slightly increasing."

He added, "All government departments need to pool their capabilities to ensure that these various positive signs lead to a firm market stabilization," emphasizing, "The most fundamental aspect is confidence in supply, and we will push forward the supply measures that have been implemented with a sense of urgency."

Minister Noh also forecasted long-term market stabilization. He said, "In the short term, finance; in the medium term, land supply; and in the long term, population and household structure will influence the housing market," and added, "Considering all factors comprehensively, I believe the market will enter a stabilization phase."

In response to the question, "Former Minister Kim Hyun-mi aimed to curb housing prices in Gangnam but has not succeeded yet. Do you still think it is necessary to control high-priced housing prices?" he replied, "In today's world, can the government artificially control prices?" and "It is impossible to implement policies targeting specific areas, and the government’s role is to guide the overall market trend toward stability."

Regarding concerns that the second round of preliminary subscriptions in the 3rd New Towns is underway but some areas have not yet properly completed land compensation, potentially delaying occupancy, he emphasized that there is "no problem."

According to the Ministry of Land, Infrastructure and Transport, among the five districts of the 3rd New Towns, Incheon Gyeyang has completed negotiated compensation, Namyangju Wangsuk is in the final stages of appraisal and will begin compensation next month. Goyang Changneung will start compensation in December after appraisal, and Bucheon Daejang has completed appraisal with compensation scheduled for early next month.

Minister Noh stated, "Land compensation requires close communication with residents," and "The ongoing procedures are proceeding without any issues."

On the 28th, a press conference with reporters covering the Ministry of Land, Infrastructure and Transport was held in the briefing room of the Government Sejong Complex, attended by Minister of Land, Infrastructure and Transport Noh Hyung-wook. (Photo by Ministry of Land, Infrastructure and Transport)

Regarding delays in redevelopment and reconstruction projects due to regulations, he expressed the view that "the market stabilization phase must be firmly established before these projects can actually accelerate."

Minister Noh explained, "Large-scale apartment supply through redevelopment and reconstruction takes more than 10 years," and "It is not an immediately effective supply." He continued, "If reconstruction regulations are eased, the market may interpret it as a development boon, causing only the prices of old apartments in that area to rise," adding, "This is a sensitive time when the market is deciding whether to stabilize or become unstable again, so choosing the right timing is not easy. Conversely, if the market stabilization becomes firm, the progress of redevelopment and reconstruction will improve."

Regarding his relationship with Seoul Mayor Oh Se-hoon, who is pushing for deregulation of redevelopment projects, he reiterated his previous stance, "We share the same view that good housing must be supplied in urban areas, and that redevelopment and reconstruction should not act as factors causing market instability," emphasizing, "There is no conflict."

When asked if there are plans such as temporary capital gains tax relief to increase the supply of older housing units, Minister Noh showed caution, saying, "While some argue that easing capital gains tax reduces transaction burdens and encourages listings, others worry that the supply effect is minimal and only side effects arise."

Regarding recent concerns that speculative demand is concentrating on houses with official prices under 100 million won in provincial areas, driving price increases, he said, "It seems these purchases are being made as a loophole to avoid acquisition tax or capital gains tax surcharges," adding, "Since this also affects the local economy, we need to consult with related agencies, but the Ministry of Land, Infrastructure and Transport agrees on the need for fact-finding surveys and institutional improvements."