ID :
189796
Mon, 06/20/2011 - 12:44
Auther :
Shortlink :
https://oananews.org//node/189796
The shortlink copeid
No more shoddy real estate measures
(Yonhap Editorial)
SEOUL, June 20 (Yonhap) -- In defiance of a recent series of government measures the real estate market has been frozen this year. Trading of houses shrank remarkably, pushing down prices further. According to the Land, Transport and Maritime Affairs Ministry, the number of apartments traded across the country in May dropped to 48,077 cases, down 13.5 percent from the previous month. Apartment tradings in Seoul also reduced by 20 percent to 3,805 cases.
Contrary to the downturn in prices of apartments and other types of homes, the key money for home leasing and monthly house rents kept on rising.
Due to the uncertain real estate market many would-be buyers of homes withheld their plan to buy homes and instead sought homes for leasing or monthly rent, even causing the shortfall of leasing homes.
The average growth of key money in the first half of this year was tallied at 4.25 percent for houses in Seoul, 7.78 percent in the surrounding regions of Seoul and 7.02 percent in newly constructed apartment towns. The key money is expected to rise further in the second half.
The government announced real estate measures four times this year to revitalize the sagging real estate market and stabilize the ever-rising deposits and house rents. The results, however, were total failures. The trading market became further stagnated while the key money and monthly rents rose. In other words, the government failed to read the market trends. The government is reportedly preparing another measure which will be the fifth announcement in the first half alone.
As the government rolls out ineffective measures frequently, the measures are difficult to be trusted by the market.
The government should make more prudential and effective measures, refraining from recklessly announcing unripened measures.
Haste revelations of measures even before they are fixed as formal policies is also a big problem creating confusion in the market.
The land minister has reportedly revealed his view that it would be desirable (for the government) to abolish the upper ceiling system for prices of new houses. The minster's remark came during a meeting with officials of construction companies, although the issue of abolishing the system is a pending issue being discussed at the National Assembly.
The ruling and opposition parties are confronting in real estate measures. The ruling party considers the abolition of the ceiling system for new apartment prices while the opposition favors the introduction of ceiling system for key money and monthly rents.
The policies on real estate markets are closely linked with people's livelihoods. The government should not announce incomplete real estate measures which will fail or require complementary measures any more.
SEOUL, June 20 (Yonhap) -- In defiance of a recent series of government measures the real estate market has been frozen this year. Trading of houses shrank remarkably, pushing down prices further. According to the Land, Transport and Maritime Affairs Ministry, the number of apartments traded across the country in May dropped to 48,077 cases, down 13.5 percent from the previous month. Apartment tradings in Seoul also reduced by 20 percent to 3,805 cases.
Contrary to the downturn in prices of apartments and other types of homes, the key money for home leasing and monthly house rents kept on rising.
Due to the uncertain real estate market many would-be buyers of homes withheld their plan to buy homes and instead sought homes for leasing or monthly rent, even causing the shortfall of leasing homes.
The average growth of key money in the first half of this year was tallied at 4.25 percent for houses in Seoul, 7.78 percent in the surrounding regions of Seoul and 7.02 percent in newly constructed apartment towns. The key money is expected to rise further in the second half.
The government announced real estate measures four times this year to revitalize the sagging real estate market and stabilize the ever-rising deposits and house rents. The results, however, were total failures. The trading market became further stagnated while the key money and monthly rents rose. In other words, the government failed to read the market trends. The government is reportedly preparing another measure which will be the fifth announcement in the first half alone.
As the government rolls out ineffective measures frequently, the measures are difficult to be trusted by the market.
The government should make more prudential and effective measures, refraining from recklessly announcing unripened measures.
Haste revelations of measures even before they are fixed as formal policies is also a big problem creating confusion in the market.
The land minister has reportedly revealed his view that it would be desirable (for the government) to abolish the upper ceiling system for prices of new houses. The minster's remark came during a meeting with officials of construction companies, although the issue of abolishing the system is a pending issue being discussed at the National Assembly.
The ruling and opposition parties are confronting in real estate measures. The ruling party considers the abolition of the ceiling system for new apartment prices while the opposition favors the introduction of ceiling system for key money and monthly rents.
The policies on real estate markets are closely linked with people's livelihoods. The government should not announce incomplete real estate measures which will fail or require complementary measures any more.
