Ruling Camp to Lift Price Cap on Private Housing Lots

The government and the ruling Grand National Party have agreed to abolish the price ceiling on private housing lots, but will decide the timing of implementation later depending on economic conditions, the Land, Transport and Maritime Affairs Ministry said yesterday.

Amid fears over an overheated real estate market and inflation, both sides agreed on a compromise by deciding to pass the bill to abolish the ceiling, but also include a supplementary provision to determine the timing of implementation based on economic conditions.

Details are expected to be confirmed at a high-level meeting between the government and the ruling party. Slated to attend are Strategy and Finance Minister Yoon Jeung-hyun, Land, Transport and Maritime Affairs Minister Chung Jong-hwan, ruling Grand National Party floor leader Ahn Sang-soo, and the party’s chief policymaker Kim Seong-jo.

Three bills are pending at the National Assembly’s Land and Maritime Affairs Committee to remove the ceiling on private housing lots only (excluding districts with overheated speculation), free economic zones only, or private and public housing (those exceeding 85 square meters) lots together.

Ruling party policymaker Baek Seong-woon said, “We plan to discuss abolishing the price ceiling with the opposition party at the committee’s bill review subcommittee Monday, and will hold a high-level meeting between the government and the ruling party this week to finalize the bill.”

This is the fourth time for the bill on removing the price ceiling on private housing lots to reach the National Assembly this year. It was included on the agenda of the subcommittee in the April session only due to significant differences between the ruling and the opposition parties.

Back then, the bill was supported by the government and the ruling party but was rejected due to backlash from the opposition parties.

The main opposition Democratic Party is against the bill for fear that removing the ceiling could lead to higher real estate prices.

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