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South Korea acts to bolster property market

Andrew Batt Property Report
South Korea acts to bolster property market - South Korea - property market


The South Korea government will temporarily ease financial borrowing and tax rules to help bolster the local housing market, which has experienced a sharp drop in transactions since late last year.



The plan calls for raising the ceiling on the amount of money people can borrow to buy a home, and to delay hikes in registration and acquisition taxes for people who purchase new residences.

Real estate transactions in and around Seoul, which account for half of South Korea’s population, started falling off noticeably from last October with the number of deals plunging 50-60 per cent in the past four months compared to normal. Such developments have practically paralyzed the housing market and adversely affected related businesses.

“The contraction in the market has made it hard for people to change homes, hurt many businesses and is putting a burden on the overall economy,” Land, Transport and Maritime Affairs Minister Chung Jong-hwan said in a news conference. He said that easing rules should help make it possible for people who want to buy homes to do so, without affecting the Lee Myung-bak’s administration policy goal of stabilizing the housing market.


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