Gov't unveils stricter measures to rein in housing market

SEOUL, October 15 (AJP) - Stricter real estate and loan regulations have been expanded to cover all of Seoul and about a dozen areas in Gyeonggi Province.

According to a set of government measures announced by the Ministry of Land, Infrastructure and Transport and related ministries, the so-called speculative zones, previously limited to several districts in Gangnam and Yongsan, now cover all 25 districts of Seoul as well as parts of Gyeonggi Province such as Anyang, Gwacheon, Gwangmyeong, Hanam, Seongnam, Suwon and Yongin, in a bid to curb soaring housing prices.

Under the new measures, which take effect next week and will remain in place until the end of next year, the loan-to-value ratio for first-time and single-home buyers will be reduced from 70 percent to 40 percent.

Taxes on property acquisitions and transactions will be raised for multiple-home owners, while single-home owners will be eligible for tax exemptions only after owning and residing in the property for at least two years. Additionally, home resales will be restricted for three years.

The ministry also pledged to speed up construction projects and redevelopment plans to supply some 1.35 million homes in the metropolitan area.

* This article, published by Economic Daily, was translated by AI and edited by AJP.