earticle

영어

The first real estate measures by the Park Geun-hae administration was announced last April 1st. The ‘4.1 Real Estate Comprehensive Measures’ contains the highest-level measures among all real estate measures in history, with 46 detailed measures, such as tax exemption for housing transaction normalization, support of purchase funds for public housing, and decrease of housing supply. Furthermore, additional measures were announced on August 28th and December 3rd. While some are positive that the above measures will somewhat be helpful in the normalization and vitalization of the real estate market by enhancing anticipatory demands, some are negative that such measures are simply a short-term shock tactic to increase chronic effective demand because the essential issue is the improvement of real economy and it is difficult to wait for such improvement. Suppliers and consumers sell and buy goods in a general market, however, the real estate market exhibits different characteristics with the general goods market. Among the characteristics exhibited by the real estate market are that price determination may appear to be irrational and to lack objectivity based on incompleteness of the market, the market generally exhibits the characteristics accompanying the real economy, and the market has a close correlation with the population and number of households. Thus, there is a need to review the economic trend in detail and to understand the mid-to-long term population movements. Therefore, this Research will first review the economic trend and population movements and then review the government policies and implementation progress of the real estate transaction vitalization methods.