South Korea Cools Off Surging Realty Prices

Since President Moon Jae-in took office in 2017, Seoul housing affordability has deteriorated to the worst on record despite tougher mortgage restrictions and new real estate taxes. The Moon administration announced 23 separate set of measures to cool home prices in the past three years, but is facing criticism that the measures are hurting those less well off. In its latest set of measures, the government said it will supply more than 132,000 new homes in Seoul through 2028 by easing building height limits and converting military sites and other state-owned properties into residential areas In addition to Seoul, pockets of Gyeonggi-do province surrounding the capital are designated as “speculative zones” subject to tougher borrowing rules including a mortgage ban on properties valued over 1.5 billion won. The government also said it would increase capital gains tax and other taxes on property ownership by corporations.