On the 5th, Minister of Land, Infrastructure and Transport Noh Hyung-ook made a remark on the 5th that “house prices will fall in two to three years” when a budget bill that will cause the economic growth rate to exceed 4% by 2024 due to fiscal expansion has been submitted to the National Assembly.
In the mid-term fiscal plan submitted to the National Assembly on the 4th, the government raised the growth rate of 4.2% to 35 trillion won in this year's supplementary budget, and the nominal GDP of 2042.2 trillion won to 2128.7 trillion won in 2022, 2214.6 trillion won in 2023, and 2304 trillion won in 2024 for four consecutive years. It announced the expansion of the budget to increase military spending by 7% per year and to increase tax revenue by 29 trillion won per year at a growth rate of 4% or more.
Minister Roh told reporters on the 5th, "Even if you buy a house by force now, house prices can come down in two or three years." "House prices should be at a level that is in harmony with other economic indicators, and for this reason, downward stabilization of house prices is necessary. I think it does,” he said.
Regarding the apartment surge, Minister Roh said, "The problem is that house prices are too far apart from other economic indicators such as gross domestic product and household credit. I ask reporters to be cautious about investing as much as I can face difficult situations when I wake up.”
Minister Roh, a former bureaucrat of the Ministry of Strategy and Finance, put forward a "plan to supply 60-80% of the market price for the 3rd new town in advance to stabilize house prices in the metropolitan area" regarding the prospect of a house price decline amid fiscal expansion, and Namyangju (Gyeyang) in Incheon (Gyeyang) ( Jinjeop) Seongnam (Bokjeong), Uiwang (Cheonggye), and Wirye, etc., has reiterated the existing housing policy as a factor in the decline of Seoul apartment prices.
Minister Roh then said about the Gyeongbu Expressway section, which is a key residential area in Seocho, Seoul, "The road capacity for the 30km section between Dongtan and Gangnam has been reduced. It is necessary to expand,” he said, adding that “we are considering a three-dimensional expansion plan to maintain the above-ground road in the section and build an underground road in the lower part,” he said.
The Citizens' Federation for Economic Justice (Gyeongsilyeon), which sold 25,852 apartments specially supplied to public officials before the Sejong city government relocated on the 5th (average supply area of 33 pyeong), surged to 820 million won per house, and the sale price jumped to 310 million won. said that the difference was 13.2 trillion won in total, 510 million won each.
For civil servants, the gains from the pre-government special apartment surge are 450 million won per house in December 2019 and 810 million won in May 2021, according to the Democratic Party's 'National Assembly and Blue House relocation announcement' in July 2020 under the Moon Jae-in administration. said that it has doubled.
According to the Korea Real Estate Agency, house prices nationwide have risen for the 22nd consecutive month and Jeonse prices have risen for the 21st consecutive month, and the government has enforced real estate policies 26 times.
The Korea Real Estate Agency said on the 2nd, “As of the fourth week of June, apartment prices in the metropolitan area rose 0.35% from the previous week, continuing the highest increase since May 2012, when the Real Estate Institute compiled weekly statistics.” “Seoul rose 0.12% for the third week in a row. Incheon and Gyeonggi increased mainly in areas with favorable conditions for the metropolitan area express railway (GTX), while Yeonsu-gu, Incheon (0.74%) and Dongan-gu, Anyang (0.99%) showed an upward trend.”
In connection with the real estate boom in the United States, the largest 'wealth transfer' in history, in which the wealth accumulated from the rapid growth of the postwar baby boomer generation (born between 1946 and 1964) (approximately 4 million won, as of the first quarter of this year) is donated to children, etc. The Wall Street Journal reported on the 2nd.
According to the Journal of the US Federal Reserve (Fed), the net worth of $35 trillion in 70-year-olds is 27% of the total wealth in the United States, soaring from 20% 30 years ago, to 157% of US GDP. It was enlarged in size by boat.
In the Cold War countries, the real estate surge in the US-led arms increase and security support. As the Korean Cold War umbrella economy became the basic model, the Moon Jae-in system took the lead in the Trump Republican arms race system and became the biggest beneficiary of the 7% increase in arms and the strengthening of the debt economy. It appears to have caused an apartment boom.