With Seoul home prices rising for 86 straight weeks, Land Minister Hong Ji-seon says gains will narrow by year-end

[Financial News] Hong Ji-seon, minister of land, infrastructure and transport, predicted that home price gains would narrow by the end of this year.
At a parliamentary audit by the National Assembly’s Land, Infrastructure and Transport Committee on the 7th, Minister Hong responded to a question from Kim Jeong-jae of the People Power Party, saying, “The three Gangnam districts and Yongsan District have already turned negative,” and “the pace of housing price increases in other areas has also slowed.” He added, “I expect housing prices to stabilize by year-end and the pace of increases to slow.”
Kim criticized the government’s real estate policies over Seoul apartment prices, which have risen for 86 consecutive weeks.
In response, Minister Hong cited speculation as well as supply problems. He said, “The housing market does not rise or fall because of any one factor; there are various factors,” adding, “There is some speculative demand as well. Housing has not been adequately supplied over the past three years, leaving supply short of demand.”
He also addressed the possibility of extending the period of the land transaction permit system and expanding the designated areas. Minister Hong said, “We are taking a close look at market conditions,” adding, “It is not simply a matter of whether the Ministry of Land, Infrastructure and Transport designates areas. We consider various factors, such as subscription competition rates, so this is not something I can make a definitive statement about here. We will continue to monitor the housing market closely and review the matter.”

[email protected] Jeong Gyeong-su Reporter