Vice Prime Minister for Economic Affairs and Finance, Cho Kyung-ho announced that the Housing prices for official housing complexes decreased by 18.6% for the current year in South Korea.

 

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Edited by |Scarlet Watson

Economy section-

23 March 2023

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    Official prices for housing compounds that include apartments, villas, and condominiums have fallen by more than 18% nationwide.

"The official prices for housing compounds decreased by 18.6 percent," Vice Prime Minister for Economic Affairs and Finance Minister Cho Kyung-ho said Wednesday at a meeting of ministers concerned with real estate at the government complex.

The size of the decline in housing prices is the largest gap since the implementation of a real estate law in 2005.

This number represents a return to what it was in 2021 when prices increased by 17.20% in 2022 AD.

It is noteworthy that the official housing prices are a basic reference for determining homeownership taxes, national health insurance fees, and others, and for determining eligibility for government subsidies for the unemployed, low-income owners, and others.

As housing prices fall, homeownership taxes will decrease while various government subsidies will increase.

"Today's decision comes from the decline in housing prices in general, thanks to the government's endeavors to stabilize the housing market and raise the interest rate for borrowing," said Deputy Prime Minister Zhou.

He added, "President Yoon Seok-yeol's government has done everything in its power since its inception to stabilize the real estate market, to correct irrational real estate regulations that have placed an excessive burden on the people, and the government will also closely monitor real estate market conditions, which are difficult to predict in the future due to the lack of Certainty inside and outside the country, in order to gradually stabilize the market.