"Housing Policy, Leave It to Local Governments Familiar with Regional Conditions" ... Daegu City Requests Incoming Administration to Lift 'Adjustment Target Areas' Designation

Daegu City Hall.

[Asia Economy Yeongnam Reporting Headquarters Reporter Yeo Jong-gu] Daegu City recently requested the Presidential Transition Committee to remove the Daegu area from the real estate adjustment target areas.

Jung Hae-yong, Deputy Mayor for Economic Affairs of Daegu City, visited the Presidential Transition Committee to explain the housing market status amid a rapid increase in unsold homes and to clarify that the area does not meet the criteria for designation as an adjustment target area, urging for a prompt removal from the adjustment target designation.

He also proposed revising the current criteria for designation and removal of adjustment target areas and delegating housing policy authority to local governments to enable operation tailored to regional characteristics.

On the same day, the city held a housing policy meeting with local housing construction companies such as Hwaseong, Taewang, and Seohan to grasp the status of unsold homes and trends in housing prices and transactions, sharing the outlook and current situation of the housing market.

Local housing developers expressed that easing regulations such as loan restrictions through removal from the adjustment target areas is essential for the current housing market and agreed that the public and private sectors should join forces to overcome the current situation.

Additionally, the city plans to form a joint public-private ‘Housing Market Stabilization Response T/F Team’ to pool administrative capabilities for stabilizing the housing market.

In 2020, the entire area was designated as an adjustment target area, and to stabilize the housing market, the city requested the Ministry of Land, Infrastructure and Transport to remove the designation five times from May last year to March this year.

Jung Hae-yong, Deputy Mayor for Economic Affairs of Daegu City, stated, “We will continue to coordinate with relevant ministries to ensure that the requested removal of the adjustment target area by the Transition Committee is promptly implemented and do our best to help the housing market smoothly return to normal as soon as possible.”