[김정태의 부동산주간뷰] The value of hire is pushing home costs up… Why are we delaying the measures?

[서울=뉴스핌]Kim Jeong-tae, Building and Actual Property Reporter = A statistical indicator price taking note of was revealed within the house gross sales and rental traits compiled by the Korea Actual Property Company final week. The speed of change in house gross sales costs throughout the nation has turned up. That is an inflection level that has been within the twenty seventh week because it become a downtrend on November 27 final yr.

The metropolitan space turned from a flat to an upward development, whereas the decline in regional areas stopped and adjusted to a flat development. Whether or not this can be a momentary phenomenon or a change in development stays to be seen, however at the least the temper in metropolitan areas resembling Seoul and Incheon is altering.

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Specifically, consideration is paid to the truth that, among the many 25 districts in Seoul, the three districts of ‘Nodogang’ (Nowon, Dobong, Gangbuk), which had been declining, have all become transfer up or down. . Normally, in the true property market, if the 4 districts of Gangnam (Gangnam, Seocho, Songpa, Gangdong) and the three districts of Mayongseong (Mapo, Yongsan, Seongdong) are a measure of market change, Nodogang is be the finale. focus. In different phrases, Nodogang is a spot the place home costs rise and fall late within the Seoul space. For that reason, adjustments within the Nodong River are sometimes learn as a turning level for a change in motion.

There could also be many components that trigger house costs in Seoul to rise, however the market sees a rise in rental costs as the most important issue. In a state of affairs the place there are various detrimental components, resembling persistently excessive rates of interest and lending rules, excessive inflation, and declining actual incomes, it’s troublesome to see that home costs might rise besides ‘ enhance in rental costs’.

Jeonse costs have been rising for over a yr. Though it’s not a sudden enhance, it’s rising frequently, and the dearth of homes for hire can also be getting worse. There are additionally ongoing reviews that, in some areas, as the extent of jeonse rises, the ‘funding hole’, which tries to purchase with jeonse, seems once more. Because of this folks say that hire costs push up home costs.

The writer has highlighted these market traits and causes a number of instances for the reason that second half of final yr. To reiterate, the rental worth is a market that strikes in line with provide and demand. Regardless of the essential logic of the market that provide is reducing and demand is growing, the federal government and the ruling and opposition political circles have folded their arms and haven’t provide you with a correct ‘coverage resolution’ discover

The rationale that provide is reducing is as a result of the variety of rental properties is reducing and the variety of new houses transferring in is reducing. First, the variety of residences transferring into Seoul in Might is ‘zero’. Though the variety of new development models has elevated throughout the nation, in Seoul, the quantity has fully dried up.

In Gangdong-gu, rental costs continued to say no for some time because of the variety of new development models transferring on this spring, however turned to upward development as provide was exhausted to some extent. That is much like the state of affairs wherein residents moved to a big reconstruction middle in Gaepo-dong, Gangnam-gu final yr. Because the variety of move-in models poured in, there was an abundance of properties on the market, so the rental worth fell, however that is much like the truth that the rental worth recovered to as quickly because the buildings had been offered out.

The variety of current dwellings for hire is reducing. The reason being easy. It is because demand is growing. The rationale why demand is growing is complicated.

First, the house density is getting worse. It is because, because of jeonse fraud, there is a rise within the avoidance of multi-family housing resembling villas, city residential housing, and semi-residential housing resembling places of work. Consequently, not solely regional polarization but in addition the selection for residences is altering to a construction that’s going to worsen.

Second, jeonse financing loans have gotten a catalyst for pushing up jeonse investments. The rental worth of most residences in Seoul has been at or increased than the worth of residences in Gyeonggi-do or Incheon. It’s a lot simpler to get a mortgage for a lease than shopping for or promoting, that are topic to strict lending guidelines. As well as, by proudly owning a home, one is free from the taxes that have to be paid, which is why the choice for jeonse continues. A ‘complete property tax abolition for single house homeowners’, not too long ago proposed by some within the opposition get together, might turn into the final coverage choice that would cut back jeonse rental density.

Third, the federal government is lacking its coverage time. Though the repeal of the 2nd Hire Act was promised, it was postponed as a result of “the unwanted effects can be higher” and “opposition from the opposition get together can be stronger,” and the present state of affairs is that he has been going for. 4 months. It’s a public indisputable fact that the renewal of contracts with current landlords is contributing to the dearth of inexpensive housing. Though it has been constantly identified that the ‘2 + 2 contract renewal’ and ‘5% cap rule’ are the primary culprits in repeating the jeonse disaster and the rent-back disaster, the Ministry of Lands, Bun -structure and Transport, the accountable ministry, responded passively.

It isn’t simple to unravel the jeonse downside with out fixing these issues fully. To stabilize the availability and demand of jeonse and month-to-month hire, additionally it is essential to get rid of the regulation of a number of owners. We should acknowledge that the personal sector makes up a full share of the rental market and is getting ready cheap alternate options.

In response, former Minister of Land, Infrastructure and Transport Gained Hee-ryong proposed a basic reform of jeonse, and present Minister Park Sang-woo proposed long-term company rental housing, however that is an motion that ‘ have to be adopted from a very long time. time period view.

Minister Park Sang-woo stated at a gathering with reporters on the thirteenth that he would introduce measures to stabilize jeonse, together with enhancements to the second hire legislation, however the announcement was quickly postponed. restrict It will be lucky if the federal government’s current measures had been thought of extra fastidiously as a result of they are going to proceed to fail.

Nonetheless, there are already measures, however there may be additionally a rumor that the ruling get together, the Folks’s Energy Get together, is ‘persevering with’ to announce measures on the Ministry of Lands, Infrastructure and Transport . The identical goes for the publication of ‘rational measures for housing and land administration’ which was anticipated to be introduced final week.

I do not know the small print, however it’s not one thing that ought to be used as a software in a political conflict with the opposition get together. It is late, nevertheless it’s not one thing to crush anymore. Legal guidelines to be abolished have to be adopted boldly, and guidelines of grass have to be adopted shortly. If this can be a card that’s utilized in political battles and it’s handed to the twenty second Nationwide Meeting, the ruling get together is worse than the opposition get together.

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