The Government intends to lift restrictions on the maximum amount of mortgage loans issued, and not to raise taxes on the purchase and registration of real estate.
Such measures are introduced in order to stimulate the activity of buyers. They will apply to approximately 90% of all dwelling units in the property market of Seoul. In other regions of the country these innovations are already in force, reports Asia Property Report.
Since last October, the number of transactions with the South Korean real estate is steadily declining. In Seoul for the past four months, this index decreased by 50-60%. This situation leads to an oversupply of supply and, consequently, higher prices. While that growth is negligible: according to Global Property Guide, the cost of housing in South Korea rose in II quarter on 0,3% against the previous quarter and by 3.2% year on year.
The aforementioned government initiatives will help to avoid soaring prices and to ensure the natural development of the market. Note that they are of interest primarily to the Korean people, because it makes housing more affordable. As for foreigners, the government used as "bait" for their residence permit, which they promise to provide those who invest in local real estate market is not less than $ 500 thousand